FSA & POP Admin
Advantages of Flexible Spending Accounts (FSAs)
You may choose to offer FSAs for many reasons. Most common is the need to control benefit costs and your desire to meet the varying needs of individual employees. With a benefits debit card, FSA spending is as easy as the swipe of a card.
FSA plans help your company control your benefit costs by providing a mechanism to limit benefit expenditures without necessarily sacrificing plan quality. Because your employees can make voluntary contributions toward benefits under an FSA plan, you can continue to offer a costly benefit such as health insurance without having to bear the full cost of premiums. You will also find it easier to introduce cost-sharing measures in a flexible benefits plan. For example, higher medical deductibles may be more palatable to employees if a medical flexible spending account is offered so that employees may pay for the deductible on a pre-tax basis.
Difficult To Administer
FSAs are extremely difficult to administer. They require extensive record keeping, and it can be frustratingly difficult to understand every particular detail.
We have partnered with a provider who provides, in our opinion, the most simple and easy-to-use system available today.
You will get internet self-service for all your FSA participants. Your implementation and operational costs will be paid by us.
We will also support your Premium Only Plan (POP), and any Transportation/Parking reimbursement plan you may offer.
For a slight additional charge, we will provide your employees with a debit card that allows them to apply the funds directly without the need to record and submit reimbursement requests.
Specific advantages of implementing a flex plan;
Substantial tax savings (FICA) for employers
Employees spend pre-tax dollars on important items
Employees can enjoy savings by applying premiums from duplicate coverage to other benefits or cash
Personalized benefit packages can increase new employee recruitment and retention
Your employees choose how to spend their benefit dollars. They better understand the cost and value of their benefits
Reduce the impact of benefit cutbacks by continuing to offer rich benefit plans with cost-share options
FSAs are growing in popularity
Only 12% of US employers offered FSAs in 1993.
56% offered FSAs in 2005.
Industry experts forecast that by 2010, 93% of employers will offer an FSA plan.
