Pre-tax vs. post-tax health insurance premium payroll deduction

Comparison of Post-Tax and Pre-Tax Deductions for Health Insurance and Flexspending Accounts

INDIVIDUAL COVERAGE (claim single; 0 exemptions)

Post-Tax

Earned Gross $1,000.00
Taxbl Gross* 1,000.00
Fed W/H $94.12
State W/H $33.74
SS $62.00
MDCR $14.50
Net $795.64
Health $50.89
Take Home $744.75

Total difference: $13.00

Pre-Tax

Earned Gross $1,000.00
Health $50.89
Taxbl Gross* $949.11
Fed W/H $88.01
State W/H $30.74
SS $58.84
MDCR $13.76
Net $857.75
Take Home $757.75

FAMILY COVERAGE (claim single; 0 exemptions)

Post-Tax

Earned Gross $1,000.00
Taxbl Gross* 1,000.00
Fed W/H $94.12
State W/H $33.74
SS $62.00
MDCR $14.50
Net $795.64
Health $219.75
Take Home $575.89

Total difference: $55.91

Pre-Tax

Earned Gross $1,000.00
Health $219.75
Taxbl Gross* $780.25
Fed W/H $67.75
State W/H $21.01
SS $48.38
MDCR $11.31
Net $631.80
Take Home $631.80

*This is reported to Social Security Administration on employees' W-2 forms at the end of the year. As a result, individuals' Social Security benefit may be somewhat diminished. Go to www.ssa.gov to calculate your SS benefits.

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