Flexible Spending Accounts

Flexible spending accounts are a great way to provide your employees with an opportunity to keep more of the money they earn.

A Flexible Spending Account (FSA), or flex reimbursement account, is an employer-sponsored benefit that allows employees to set aside a portion of their earnings to pay for qualified out-of-pocket medical expenses and/or dependent care expenses. Contributions made to a Flexible Spending Account are deducted BEFORE Federal, State, or Social Security Taxes are calculated and are never reported to the IRS. The end result is a decrease in taxable income and an increase in spendable income. This can save employees hundreds or even thousands of dollars a year. In addition to the employee savings, the employer benefits by reducing the amount of their payroll taxes and avoiding the FICA match (7.65%) on any of the funds the employee places in their FSA.Â

The improvements in debit card technology have made flexible spending accounts even more convenient. Using a flex debit card eliminates the need to pay for qualified expenses upfront and then wait for reimbursement. Employees are able to have immediate access to their flex funds for medical and/or dependent care expenses by simply swiping their card at the point of service. This added convenience has dramatically increased the number of participants in the flexible spending accounts for the average employer, which results in a win-win situation for everyone.

Houze & Associates can shop your needed coverage to some or all of the following carriers:

MedCom Administrators