Flexible Spending Accounts

Employees may establish Flexible Spending Accounts to set aside pre tax, payroll deducted dollars to pay for eligible tax free expenses. Under a Section 125, employees and employers may save payroll tax dollars through:

  • Pretax Premium Plans
  • Healthcare Flexible Spending Accounts
  • Dependent Daycare Flexible Spending Accounts
  • Premium Reimbursement Accounts
  • Adoption Assistance Programs
  • Transportation Plans

Section 125 accounts have tax advantages for both the employer and the employee. The employer reduces his taxable payroll (thereby saving on employer matching social security and medical taxes, as well as any applicable SUTA and FUTA taxes).  Depending on the individual employee tax situation, most employees see a tax savings on Section 125 contributions of between 25% and 40%.

Service Snapshot

  • Online account access for participants; employer and appointed representatives
  • Prepare and provide client and enrollees with a Summary Plan Description related to the plan.
  • Employer choice of online/paper enrollments
  • Daily claims adjudication; reimbursements normally received by participant within 5 business days
  • Access to Benefit Specialists for eligibility and claims questions
  • Open enrollment meetings; customized ongoing employee education
  • Direct deposit or paper check claim reimbursement
  • Assistance with 5500 reporting as required
  • Limited FSA accounts for HSA participants
  • Online employer reports – customizable
  • Employer choice of plan funding