EmployEE Savings
Employee benefits using the Shared Benefits Plan (SBP) are:
- Reduced Federal, State & Social Security taxes
- Increased take-home pay
Assume you earn $48,000 a year and pay $2,400 annually for your health insurance coverage. With the SBP, your take-home pay will increase by $720 as illiustrated below.
| Employee tax savings illustration: | Without SBP | With SBP |
|---|---|---|
| Your Income | $48,000 | $48,000 |
| *Less Health Premiums You Pay | $0 | $2,400 |
| Taxable Income | $48,000 | $45,600 |
| Estimated Federal, State & FICA Taxes (30%) | $14,400 | $13,680 |
| Income After Taxes | $33,600 | $31,920 |
| Less Health Premiums You Pay | $2,400 | $0 |
| Your Take Home Pay | $31,200 | $31,920 |
| Increase in Take Home Pay | $0 | $720 |
Estimated EMPLOYEE Financial Savings Worksheet
Employee Contributions to Health Premiums (Annual)
Estimated Federal/State/Social Security
(use 27% if not sure)
Annual Savings or Increase in Take Home Pay