Financial Benefits

PHMP Net Annual Payroll Tax Savings Estimator

Example Paycheck

Before & After the PHMP


Employee w/ $60k annual income

$625 per month indemnity benefit for participation, filing single
Before After Difference
Regular Pay $5,000 $5,000
Sec 125 PHMP Deduction $0 ($755)
PHMP Plan Cost
($755)
Taxable Income $5,000 $4,245 ($755)
Federal, State and FICA Tax ($1,326)** ($1,065)** $261
Indemnity Claim $0 $625 ***
Indemnity Claim Payment
$625
Net Paycheck $3,674 $3,805 $131
Monthly Increase in Spendable Income $131
Annual Increase in Spendable Income $1,572

Example Paycheck

Before & After the PHMP


Employee w/ $25k annual income

$625 per month indemnity benefit for participation, filing single
Before After Difference
Regular Pay $2,083 $2,083
Sec 125 PHMP Deduction $0 ($755)
PHMP Plan Cost
($755)
Taxable Income $2,083 $1,328 ($755)
Federal, State and FICA Tax ($461)** ($274)** $187
Indemnity Claim $0 $625 ***
Indemnity Claim Payment
$625
Net Paycheck $1,622 $1,679 $157
Monthly Increase in Spendable Income $57
Annual Increase in Spendable Income $684

The information contained in this promotional material is for illustrative purposes only and is subject to change. Statements, figures, calculations, plans and representations are indicative only to the specific figures in the example given above using the current calculations utilized at the present time.

** Before PHMP / Tax Rates are Federal 9.50%, State 5% and FICA 7.65%

** After PHMP / Tax Rates are Federal 8.00%, State 5% and FICA 7.65%

*** The indemnity payment paid under the PHMP may be taxable income; however, the taxable effect will depend on the facts and circumstances of each individual plan participants’ tax situation. The PHMP is pleased to offer the BMD Tax Hotline to all PHMP plan participants at no cost. The BMD Tax Hotline website contains updated FAQs and access to live tax professionals. Plan participants or their tax preparer can access the BMD Tax Hotline website or schedule a time to talk to a live tax professional.