 
Metrochek's direct benefit tax advantages
Assumptions:
- Employee pays 28% in federal income tax.
- Employee pays 6% in state income tax.
- Employer pays 30% in federal/state income tax.
If the employer provides $65 per month ($780 per year), this is the value to the
employee:
| Employee Value |
Private Employer (for profit) |
Non-Profit/Federal Employer (FERS) |
Government Employer (CSRS) |
| Base Amount |
$780 |
$780 |
$780 |
| Federal Income Tax Saved |
$218.40 |
$218.40 |
$218.40 |
| Employee FICA 7.65% Saved* |
$59.67 |
$59.67 |
$11.31 |
| State Income Tax 6% Saved |
$46.80 |
$46.80 |
$46.80 |
| True Value to Employee |
$1,104.87 |
$1,104.87 |
$1,056.51 |
This is the cost to the employer:
| Employer Costs |
Private Employer (for profit) |
Non-Profit/Federal Employer (FERS) |
Government Employer (CSRS) |
| Base Amount |
$780 |
$780 |
$780 |
| Employer FICA 7.65% Saved |
($59.67) |
($59.67) |
($11.31) |
| Employer Unemployment Tax Saved |
($46.80) |
($46.80) |
($46.80) |
| Less 30% Fed/ State Tax Ded. |
($234.00) |
0 |
0 |
| Net Cost to Employer |
$439.53 |
$673.53 |
$721.89 |
*Civil Service column uses only Medicare tax rate (1.45%), not full
FICA rate
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