Taxing Health Benefits

Introduction

The effect of taxing health benefits will have a crippling effect on both EMPLOYERS and EMPLOYEES. Employees save 20-40% and the employer saves the 7.65% FICA match.

This calculator will simulate the extra cost to you as an employee.

Step 1: Input Your Tax Information

Step 2: Input Common Expenses

Select from the common expenses below to include in your tax analysis.

Income Analysis

Effect on Employee:

If your health benefits and expense cannot be done on a pre-tax basis, the real cost of your expenses paid on an after-tax basis would increase by % from $ to $.

Most low income and middle class families cannot afford this increase.

For more information about the good effect of pretaxing FSAs for medical expenses click here for "What is a Flex Plan"

Effect on Employer (the Business):

In the example above, the business will see an increased cost of $, which equals $ (the cost of the expense), multiplied by %, the business's portion of FICA.