We currently have the federal workplace posters displayed in the lunch room. We want to use that space on the wall for other things, and we were thinking of moving the posters to the employee entrance. What are the posting location guidelines? Answer... read more
Employees are a company’s biggest asset and adopting an efficient employee benefits administration process should be the focus of every company, regardless of its size. An integral part of employee benefits administration is efficient flexible spending account (FSA) administration.
Flexible Spending Account (FSA), also referred as reimbursement account or flex plan, is a tax-advantaged financial account that an employer can establish through a cafeteria plan. A flexible spending account permits employees to set aside money on a pre-tax basis to pay for qualified expenses (most commonly this includes medical expenses and/or dependent care expenses) as established in the plan.
Flexible spending accounts help employees to meet those medical and dependent-care expenses that are not covered by employees’ regular insurance plan. Typically, cafeteria plans through which an FSA is offered are of two types:
- Medical Expense FSA
- Dependent Care FSA
The medical expense FSA is used for covering the medical expenses that are not paid for by insurance and employees use a dependent care FSA to pay for certain dependent care expenses that he/she bears.
Flexible spending accounts provide significant benefit to both the employee as well as the employer. Employees who choose to set aside money in a flexible spending account reduce their taxable income. Similarly, employers who establish flexible spending amounts do not have to pay the employer portion of the Social Security tax on those amounts and thus are able to reduce their payroll taxes.
Administering FSAs is often a complex and mundane process. In addition, for the process to be an efficient one, as an employer you need the required knowledge and need to put in substantial amount of man-hours. Precisely for these reasons, many companies today choose to outsource FSA administration and other employee benefits administration process to experts, saving both money and time. Experts at Solid Business Solutions can manage all the aspects of flexible spending account administration on your behalf.
To learn more about Flexible Spending Account (FSA) Administration services provided by Solid Business Solutions or to speak with a representative, contact us today at (888) 762-2075 or complete our online quote request form above.
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