{"id":303,"date":"2014-01-23T20:42:33","date_gmt":"2014-01-23T20:42:33","guid":{"rendered":"http:\/\/www.sabcflex.com\/wordpress\/?page_id=303"},"modified":"2023-07-14T15:03:17","modified_gmt":"2023-07-14T15:03:17","slug":"premium-only-plans","status":"publish","type":"page","link":"https:\/\/www.sabcflex.com\/content\/premium-only-plans","title":{"rendered":"Premium Only Plans"},"content":{"rendered":"

PREMIUM ONLY PLANS (POP)<\/strong><\/p>\n

Premium only plans allow you to pay for certain employer deducted insurance premiums with tax-free dollars. By simply electing to participate, your employer will begin to deduct your premium before the computation of Federal, State and FICA taxes, and that amount will not be reported as income for W-2 wages.<\/p>\n<\/div><\/section>\n<\/div><\/div><\/div><\/div><\/div>

\n

Cafeteria Paycheck Illustration<\/h3>
<\/div><\/div><\/div>\n
<\/div>

WITHOUT PARTICIPATION <\/strong><\/span>
\n IN CAFETERIA<\/strong><\/span><\/p>\n

$1,000 GROSS SALARY\/W-2 INCOME<\/strong><\/span>
\n -300<\/u> TAXES (STATE, FED, SOC. SEC.)<\/strong><\/span>
\n 700 NET CHECKS<\/strong><\/span>
\n -100<\/u> INSURANCE &\/OR OTHER EXPENSES<\/strong><\/span>
\n $ 600 NET SPENDABLE INCOME<\/strong><\/span><\/p>\n<\/div><\/section><\/div>

WITH PARTICIPATION <\/strong>
\n IN CAFETERIA<\/strong><\/p>\n

$1,000 GROSS SALARY<\/strong>
\n -100<\/u> INSURANCE<\/strong>
\n 900 NET CHECKS\/W-2 INCOME<\/strong>
\n -270<\/u> TAXES (STATE, FED, SOC. SEC.)<\/strong>
\n $ 630 NET SPENDABLE INCOME<\/strong><\/p>\n<\/div><\/section><\/div>

<\/div>

As you see from the above illustration, by placing your insurance premiums under the plan, your premiums <\/em>will be deducted before your paycheck is taxed, increasing your take-home pay, and reducing your reportable income. <\/em>This will work the same if you participate in dependent care or unreimbursed medical.<\/em><\/p>\n<\/div><\/section>\n<\/div><\/div><\/div><\/div><\/div>