Benefits for 2022 Value of Pre-Tax Benefits SECTION 125 PLAN Labster operates a Premium Only Section 125 Plan, which allows you to reduce your total taxable income by your portion of group insurance premiums. In effect, this is just like getting a raise - your withholding taxes are reduced, and your take-homepay increases! Example: Employee earning $30,000 annually, paying $200/month for benefits Without Pre-Tax Benefits With Pre-Tax Benefits Gross Pay $30,000 $30,000 Insurance Deductions/Payments $0 $2,400 Taxable Income $30,000 $27,600 Taxes at 25% $7,500 $6,900 After-Tax Income $22,500 $20,700 After-Tax Payment for Benefits $2,400 $0 Take-home Pay $20,100 $20,700 INCREASEIN TAKE-HOME PAY +$600 2022 Employee Benefit Guide This booklet provides only a summary of your benefits. All services described within are subject to the definitions, limitations, and exclusions set forth in each insurance 16 carrier or provider’s contract.