Employers can offer two kinds of flexible spending accounts (FSA) – Healthcare and Dependent Care Flexible Spending Accounts. Both of these accounts were created by Internal Revenue Code § 125. Flexible Spending Accounts allow employees to set aside money on a pre-tax basis to pay for eligible healthcare and dependent care expenses. Employers who offer Flexible Spending Accounts may experience a reduction in employer and FICA taxes. Employees who participate in Flexible Spending Account reduce their taxable wages, which in turn puts more money back into their paycheck.
Other plans that employers can offer to their employees with a pre-tax benefit are a Premium Contribution Plan and a Commuter Expense Reimbursement Account.
BenefitHelp Solutions offers several third party
administrative products to make benefit administration easy. BenefitHelp Solutions
products include COBRA Administration, Flexible Spending Accounts, Premium
Contribution Plans, and Premium/Retiree Administration. With so many intricate
policies, guidelines and regulations, benefits administration should be left
to the experts. Contact
for a proposal today.
Find out more about these BenefitHelp Solutions services:
Find out more about FSA Administration through BenefitHelp Solutions.