Flexible Spending Information
Example of take-home pay increase

Here's an example of how a typical employee's take-home pay will increase as a result of participating in an FSA.

An employee makes $2,000 each month and decides to participate in her employer's FSA Plan. She pays her insurance premiums and health and daycare expenses through the FSA with tax-free dollars. And, she is able to save $100 each month!

Your Paycheck Without A Plan
Salary $ 2,000

FICA, federal, state taxes - 500
Insurance premium - 100
Health & daycare expenses - 300
Net Pay without a Plan $ 1,100

Your Paycheck With A Plan
Salary $ 2,000

Insurance premium* - 100
Health & daycare expenses* - 300
Adjusted earnings 1,600
FICA, federal, state taxes - 400
Net Pay with a Plan $ 1,200

*Paid through the FSA plan.