Flexible Spending Account Administration
With the current trend toward Consumer Driven Health Plans (CDHP), Flexible Spending Accounts (FSAs), often referred to as FSA plans, section 125 plans and flexible spending plans, and Health Reimbursement Accounts (HRAs), often referred to as medical reimbursement accounts, are becoming an even more significant part of most companies' benefit offerings.
FSAs and HRAs are tax favored plans which provide employees with reimbursement for medical, dependent care and commuter expenses on a pre-tax basis. Payroll dollars are set aside pre-federal, FICA and, in most cases, state taxes and are used for eligible expenses.
The pre-tax aspect of a Flexible Spending Account and a Health Reimbursement Account allow for the rising cost of healthcare to be partially offset for both the employer and the employee. They are an integral part of section 125 plans.
» Learn more about the Benefits of Spending Accounts.
If you would like more information, please request a proposal.