Flexible Spending Accounts (FSAs) can be paired with any health plan as a tax-advantaged way for your employees to pre-fund their medical expenses for the year. They contribute pretax dollars to the account each pay period, and then are reimbursed for eligible medical expenses, including copays, doctor bills, prescription drugs and more.
FSA plan designs can be customized and combined to meet the benefit needs of any company and its employees.
Employer Advantages of FSA
- Reduces employment taxes: FICA, unemployment, and workers compensation
- Provides an outstanding corporate-sponsored benefit at no increase in salary
- Enhances employee benefit package – helps to recruit new employees and reduce turnover
- Easily understood and implemented
Employee Advantages of FSA
- Reduces taxable income
- Increases spendable income
- Offers an easy and convenient way to pay for expenses not covered by insurance; funds are available when expenses are incurred
- Allows the purchase of other benefits on a pre-tax basis
- Offers benefit selections based on their needs
- Benefits from Flex125™ accounts are higher than what Social Security will provide (in most cases)
- FSA Administration
What CBG Benefits Provides
CBG Benefits not only provides a wide array of FSA options but also specializes in online and networked services that make FSA administration easy and simple. We can provide custom communication materials to help you and your employees understand and benefit from an FSA.
- FSA Advantages: With the many consumer-driven and tax-advantaged health plan options available, it can be confusing to keep them all straight. Our educational materials explain flexible spending accounts and how they differ from Health Saving Accounts (HSAs) and Health Reimbursment Accounts (HRAs).
- Legal Compliance: Any tax advantage is going to come with strings attached. We can help you stay compliant with all of the regulations governing FSAs, including timely coverage of new and changing federal legislation and IRS guidelines.
- Employee Communications: The key to successful implementation of an FSA is communication. Our customized flyers, payroll stuffers and presentations will help you promote awareness of the FSA option and explain its benefits and how to use it.
We also offer featured services such as the Benny Debit Card and FSA Web Access.