There are 10 everyday expenses that can be spent with pretax dollars.
When you make eligible purchases, some accounting happens inside of payroll. This step makes sure your next paycheck takes out the exact amount of taxes you owe on that paycheck. When taking into consideration all the money you spent on those purchases, your take home pay goes up.
Employees should considering enrolling if they make purchases in any of the following categories:
- Mass-transit (train, subway, ferry, etc)
- Parking (street parking, garages, etc)
- Ride-sharing (UberPool, Lyft, Via, Chariot, van pooling)*
- Child care (daycare, nannies, some pre-school)
- Adult care (includes transportation costs)
- Day Camp (summer, before school, after school)
- Eye care (glasses, contacts, vision exam, etc)
- Dental care (cleanings, x-rays, procedures)
- Medical expenses (doctor co-pays, coinsurance, etc)
- Prescriptions (mail order, pharmacy, etc)