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San Joaquin Health Care 2004 JPA Handbook

Cafeteria Plan
A Section 125 Cafeteria Plan allows for contributions into your individual dependent care and un-reimbursed medical flexible spending accounts on a pre-tax basis. This program allows you to pay for day care and other health care expenses prior to paying payroll withholding taxes on those monies. This reduces the amount of payroll taxes deducted each pay period. Below you will find a table illustrating the financial benefits of participating in this program.

Here is how a flexible spending account can reduce your taxes and increase your spendable income.

The SJJPA provides its member districts the opportunity to offer employees the option of participating in a Cafeteria Plan.

Tax Savings Are Available On

  • Child Care expenses
  • Deductibles
  • Co-payments
  • Out of pocket medical expenses
  • Out of pocket dental expenses
  • Out of pocket vision expenses

A Cafeteria Plan allows employees to set aside pre-tax dollars in their own flexible spending account to pay for day care and most
un-reimbursed health care expenses.

Statement of Earnings and Deductions
Employee ID No. 345
Check No. 99999
Employee Name Key Employee
Pay Period
Beginning		 10/01/03
Social Security No. 123-45-6789
Pay Period
Ending		 10/01/03
  No Cafeteria
Plan		 Cafeteria
Plan
Gross Pay $1,645.00 $1,645.00
Deductions:    
Medical $ 6.77 $ 6.77
Dental $0.00 $0.00
Vision $13.25 $13.25
Short Term Disability $13.25 $13.25
Medical Care (before taxes) - $ 32.00
Dependent Care (before taxes) - $ 150.00
     
Federal and State Withholdings $ 493.50 $ 428.93
Medicare Tax $ 45.07 $ 39.18
Total Deductions $ 571.84 $ 683.36
     
Medical Care Expenses (after taxes) $ 32.00 -
Dependent Care Expenses (after taxes) $ 150.00 -
     
Spendable Income $ 891.16 $ 961.64
 
Additional Spendable Income per Pay Period $ 70.46
And:
  1. Dependent Care is Paid
  2. Co-payments for prescriptions and office visits are covered



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San Joaquin JPA Handbook 2004