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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 |
*Additional tax savings may apply if you're enrolled in an HSA-compatible High Deductible Health Plan and you make HSA contributions on a pre-tax basis.
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