Offering Flexible Spending Accounts Enhances Benefit Options
As Human Resource departments across the country meet with agents and brokers to put the final touches on benefit plan options, many are finding costs continuing to rise. While analysts are expecting the increases to be between eight and 10 percent nationally, out of necessity employers continue to shift more of the financial burden back to the employees. This shift has boosted participation in Flexible Spending Accounts (FSAs) and given employers more incentive to offer the plans.
One of the greatest advantages of an FSA is the tax savings generated and the increase in spendable income for participants. However, it's not just the employees who save. By reducing payroll with pre-tax deductions, the employer can also realize a significant tax savings.
The key to maximizing participation in the FSA is education. Employers and employees need to understand the advantages of FSAs. Here's a short primer:
- Out-of-pocket medical expenses reduce costs when deducted pretax.
- Accurate estimations of annual expenses reduce risks and put money back in your pocket.
- FSA participants make better consumers.
- Many over-the-counter medications (OTC) are allowed as pretax expenses.
- Some participants may reap the added benefits of additional time to use FSA dollars following a ruling, which allows an additional 2-½ month grace period.
- Allowing an FSA may cushion higher health care costs
Having Infinisource handle FSA saves employers time and keeps them in compliance with complicated Federal regulations. With the full-service FSA clients and participant are provided with materials and 24/7 participant access to account information.
Working towards an easy transition to an FSA plan, Infinisource is excited to announce online enrollment for clients with an upcoming FSA renewal. This allows participants to enroll in the FSA 24 hours a day, at their convenience. Online enrollment will alleviate many of the administrative headaches during the busiest time of the year by keeping the paper work minimal and allowing Infinisource to maintain participants' elections.
- How does it work?
- In order to offer online enrollment to all eligible employees, Infinisource requests a file containing basic employee information for each eligible employee. Upon receipt of the file, Infinisource will create an account for all eligible employees online and allow your participants the ability to enroll through December 7, 2005. (1/1/2006 effective dates)
- Your participants will enroll on the same site they currently use to access claims information for the current plan year. After the enrollment site is closed you will receive a report including the following information for each participant: first and last name, annual election amount, and the per pay period deduction amount.
- How do I sign up?
- Is this enrollment process required?
- It is in the employer's best interest to not only establish an FSA program, but to educate employees on the benefits and use of the program. A review on what is available, along with ability to see what employers and employees can save with these accounts, call 800-779-6384 or visit our website at www.benefitsolved.com to view information available to assist with an FSA Plan.
- Enrollment materials may be downloaded from our website.
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