Flexible Spending Accounts
Flexible Spending Accounts allow employees to put money aside pre-tax to pay for certain eligible expenses as described by the Internal Revenue Code (IRC). Employees save on their Federal Income Tax, FICA Tax and State Taxes in most states. Employers save money on these plans as well because their FICA taxes are lowered. The employer typically saves enough to pay for the administration of the plan making this a no cost benefit to the employer.
There are two basic types of flexible spending account (FSA);
- Health FSAs reimburse employees for eligible medical expenses that are not paid for by any other source. These expenses can be incurred by the participant, their spouse or their eligible IRC Section 152 Dependents. Eligible expenses include deductibles, co-pays, vision, dental and prescriptions as well as any other medically necessary items that are not covered by insurance.
- Dependent Care FSAs reimburse employees for eligible dependent day care expenses. These expenses must be incurred to allow the employee and their spouse to be gainfully employed. Eligible expenses include a babysitter, daycare, afterschool programs and day camp. The expense must be incurred while the employee and their spouse are working. Dependent Care Reimbursement is only available for the care of Children under the age of 13 or a spouse or dependent who is physically or mentally incapable of self care.
Flex Facts provides each participant a debit card to be used at the point of service so that the participant does not have to put money out of their pocket and wait for reimbursement. A single debit card is issued that can be used for the Medical and Dependent Care FSA as well as Commuter Benefits and a Healthcare Reimbursement Arrangement if the participant has these options available.
- Web access to transaction history, available benefits, and claims history
- Single debit card to be used at the point of service for all accounts (FSA, transit, parking and HRA)
- Fast and accurate daily claims reimbursements
- Real-time access to account information via either phone or the Internet
- Convenient enrollment process
- Tax savings associated with participant contributions - specifically the elimination of the employer portion of the payroll tax covering contributions on pre-tax earnings designated for reimbursement accounts.
- Benefits administration designed to assist you with compliance with Section 125 of the Internal Revenue Code
- Plan Documents and SPDs
- A dedicated account executive
- Web access to service and support
- Secure access to plan participant information
- Management reports