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What is FSAFlex?
Increased flexibility for both employers and employees FSAs, including dependent care flexible spending accounts (DCFSAs) and limited purpose flexible spending accounts (LPFSAs), transit/parking accounts (TFSA) allow the account holder to set aside pre-tax money to pay for eligible expenses including healthcare, dependent care costs, or transit/parking expenses throughout the year. Employees voluntarily establish an annual election for each account type.
FSA features include:
- Funds can be used for a variety of medical, dental, vision, and dependent care expenses, depending on the type of FSA
- FSAs may be designed to offer pre-tax transit and parking accounts
- Because FSAs are funded with pre-tax dollars, they reduce employees income taxes
- Employers can contribute to employee FSAs if they choose
Advantages for Employers:
- Employers may contribute to FSAs, and contributions are tax-deductible for the employer
- Employers save FICA (6.2%) and Medicare (1.45%) matching taxes on the value of pretax contributions made by employees
- Employers received the accolades of offering a solution to employees for out-of-pocket medical expenses not covered by the group benefit plans
Advantages for Employees:
- Contributions that employers make are excluded from employees' gross income
- Employees have a virtual healthcare line of credit, that can be advanced as the employee participant requires to maintain good healthcare outcomes for themselves or their family members
- The IIAS approved debit card eliminates submitting paper claims
- The FSA saves the employee 25 – 30% on all eligible healthcare expenses
- The FSA offers a full smartphone app and web portal to manage healthcare events
Introducing Flexible Spending Accounts (FSA):
Choose FSAFlex to streamline your administration, maximize savings, and provide valuable benefits to
A Flexible Spending Account (FSA) empowers employees to allocate or set aside a specific portion of each paycheck into an account, free from federal, state, social security, or Medicare income taxes.
Throughout the year, participants have full access to these funds for reimbursement of qualified expenses. They can conveniently access their funds using the FSA Debit Card (optional, depending on the employer), with most point-of-sale transactions being automatically approved by assigned SKU number using a proprietary audit database (although some purchases may require additional documentation). Manual claims are processed daily, and reimbursements are typically deposited directly into participants' bank accounts.