Bottom Line – Employers can benefit greatly by offering a Flexible Spending Account to their employees!
1. Employer Saves Money on FICA Taxes
Example – If your employee makes $30K a year, then as the employer you would pay $2016 in FICA taxes.
This is an annual savings of $168 for just one employee!
2. FSA are Appreciated and Often Vital for Employees
Saving 20 to 25% on medical expenses can be a HUGE benefit to employees! Especially if your employees have ongoing medical needs to address for themselves or their families. Just imagine being able to save 25% on braces for kids simply by using funds from an FSA!
This perk is very much appreciated and can give you an advantage in employee retention and recruitment!
The Cost to offer an FSA is Minimal – Just a small number of participants will more than pay for the service in tax savings! It’s a WIN / WIN.
• The FSA plan can be set up at any time and does not need to correspond with your existing benefits plan year.
• The employer is not required to offer group benefits in order to have an FSA. They are completely separate of one another.
• The maximum amount allowed per employee for an FSA is $2,500
• Up to $500 can be carried over from one plan year to the next. This was a big, and appealing, change to the program this year!
• Dependent Care Accounts are included with any FSA set up – this allows pre-tax money to be used for child & adult care. Do you have employees who send their kids to daycare? If so, this is a very valuable perk you can offer!
Questions? Contact Greg Holley at firstname.lastname@example.org or by phone at 918-524-6321.FlexPlan Administrators is a UPAL Preferred Business Partner and local administrative firm providing services for all aspects of an employers’ Flexible Benefits Plan. Including: FSA’s, HRA’s, HSA’s, Cafeteria Plans and COBRA Administration. Learn more about the benefits and savings that FPA offers to UPAL members.