Flexwise™ Cafeteria Plan Administration

Flex Plans - How They Work

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 FLEX Plan
Salary	$2,000
FICA, federal, state taxes	$500
Insurance premium	$100
Health and daycare expenses	$300
Net Pay Without A Plan	$1,100

Your Paycheck With A FLEX Plan
Salary	$2,000
Insurance premium	$100 *
Health and daycare expenses	$300 *
Adjusted earnings	$1,600
FICA, federal, state taxes	$400
Net Pay With A Plan	$1,200

* Paid through the FSA plan.