Paycheck Example

Employee with Single Coverage

Jane's 2020 Insurance Elections:

 

Election item Jane's election Jane's Cost of each benefit
Every benefit eligible employee receives a $90 general benefit credit
Health Insurance UIChoice, Employee Only  $34
Dental Insurance Dental II, Employee Only $0
Group Life Insurance $50,000 Jane receives a $40
shared savings credit
Voluntary Term Life Insurance (VTL) Waive $0
Accidental Death &
Dismemberment Insurance (AD&D)
$1 Million, Single $16
Spouse/Dependent Life Insurance Waive $0
Long Term Disability (LTD) Provided by UI $0
Health Care Spending Account Waive $0
Dependent Care Spending Account Waive $0
Total =     $50 in benefit elections and $130 in credits

Since Jane did not use her remaining general and shared savings credits to purchase other benefits, such as VTL, the remaining amount of credits default into her Health Care Flexible Spending Account automatically.

$130 (total credits) - $50 (Jane's benefit costs)  = $80 in credits that will default into a HCSA on a monthly basis.