Premium Conversion

Tax Savings Illustration

Joanna earns $35,000/year. Joanna and her family are covered on her employer’s group medical plan. Joanna’s portion of the premium to cover her family is $400/month or $4,800/year. This is deducted from each of her paychecks.

Joanna’s take-home pay without Premium Conversion:

Gross Pay:	$50,000
Taxes @ 30%:	-$15,000
	$35,000
Medical Premiums:	-$4,800
Net Pay:	$30,200

Joanna’s take-home pay with Premium Conversion:

Gross Pay:	$50,000
Medical Premiums:	-$4,800
	$45,200
Taxes @ 30%:	-$13,560
Net Pay:	$31,640

Joanna will take home $1,440 more if she utilizes Premium Conversion!