Benefit plans that are easier to understand, use, and get your money back!

eflexgroup.com is a National Third Party Administrator of Flexible Spending Accounts (FSA), COBRA Administration, Health Reimbursement Accounts (HRA), HSAs and Pre-tax Transportation Benefits. Our products, expertise, and website make the future of employee benefits Quick, Easy, and Simple!

What is a Flexible Spending Account (FSA)?

A Flexible Spending Account (FSA) is a pre-tax benefit that allows employees to deduct money pre-tax out of each paycheck to help pay for medical expenses such as co-pays, dental visits, eyeglasses, and over the counter drugs. The FSA also allows daycare and individual health premium expenses to be pre-tax!

Why we are different than the rest!

• Online Account Look-up 24 hours a day
• Claims Processed Daily
• Online Claim submission
• Toll-free fax claim submission
• Recur payments for those claims that are consistent each week or month
• Debit Card makes filing claims a "swipe"
• Live Chat
• Flexpert for the best in compliance
• Newsletter
• 200 plus years of experience
• Online forms and online submission
• Educational materials for all types of learning styles
• Very Competitive Pricing

For more information on our Flexible Spending Account (FSA) Plans, please visit our Generate a Proposal page.

Choice Between Cash or a Qualified Benefit

Flexible spending accounts are a simple and convenient solution for paying out of pocket health and dependent care expenses with pre-tax dollars. These accounts can be funded by the employee, the employer, or both.

Also available as an added convenience is the eflex convenience card. This has dramatically increased employee participation as there is no longer the wait for claim reimbursement. Click on the eflex convenience card for more information.

The following are the three types of Flexible Spending Accounts:

Uninsured Medical Expenses (Health FSA)

For all medically necessary doctor prescribed medical expenses that are not covered by insurance and that are eligible under Section 213 of the IRS Code.

i.e. Deductibles, prescription co-pays, dental work; for a more comprehensive list of eligible expenses please look at the Health FSA Worksheet or you can ask Flexpert. To calculate your yearly expenses, use the Expense Worksheet.

Dependent Care FSA

For the cost of caring for dependents while you work.

i.e. Child care expenses, daycare, after school care, preschool; for more information about the Dependent Care FSA please look at the Dependent Care Worksheet or ask Flexpert.

Individual Premium FSA

For individual (non-group) insurance premiums for the employee or their family members’ (dependent on interpretation) insurance plans. The premiums for the policies must be personally billed at home to qualify.

Examples of eligible policies include; Accident Insurance, Dental Insurance, Hospital Insurance, and Cancer Insurance. To find out if your individual insurance premium qualifies ask Flexpert.

Tax Savings and Other Benefits

By participating in a Flexible Spending Accounts both the employer and employee save tax dollars and gain other benefits.

Employers

• Save 7.65% in FICA taxes. - click here to see how much you will save.
• Control benefit costs by implementing a cafeteria plan
• Increase employee morale and retention
• Enhance status as an employer
• Gain flexibility in benefit planning

Employees

• Save up to 30% on state, federal, local and FICA taxes, depending on state of residence. - click here to see how much you will save.
• Can budget for out-of-pocket medical and daycare costs
• Control where they spend their benefit dollars

Legal Facts

In order for this benefit to be taken on a pre-tax basis it has to follow certain IRS guidelines. Along with these guidelines come certain legal facts employers and employees should be aware of.

“Use it or Lose It” Rule

The “Use it or Lose it” rule comes from Section 125 of the IRS code that states the employee will lose any money that is left in their flexible spending account at the end of the plan year.

This does not have to be a major drawback, eflexgroup.com can help educate your employees so that they do not put in money they do not anticipate to spend. We also advise them of their account balances through reports on all reimbursement checks. Employees can also check their account balance 24 hours a day through Your Account Section or by calling our automated telephone system at (866) 507-3539.

Uniform Coverage Rule

This rule states that whatever the employee decides to place in the Health FSA is “available” at all times. For example, if the employee has elected $1200.00 per year and has a claim for glasses in the first month of the plan year, eflexgroup.com must pay the claim in full. We mitigate this risk by:

• Forming a partnership with you to warn when the employee gives notice. We put the account on hold until the matter is under control.
• Limiting the amount the employees can withdraw for the year. Limits are advisable when turnover approaches 15% per year.
• The employer can “ask” the employee who terminates to repay any advance payment he or she received.
• Using the forfeitures to offset any funds not paid back.
• The employer must provide the funds if eflexgroup.com requires them to be available. We provide a review of the accounts every quarter and if the accounts are sufficiently funded we provide a refund of the employer’s funds.

The uniform coverage rule was unsettling for employers when first enacted. However, it does encourage employee participation by making funds available for their use immediately.

Type of Corporation Status

Subchapter S Corporation shareholders above the 2% level may not participate in cafeteria plans, but they may sponsor a plan for the employees. In addition, the family members and close relatives may not participate.

LLC, LLP and Sole Proprietors may not participate in a cafeteria plan, but may sponsor one for their employees. However, if the spouse is a bona fide employee of the firm, he or she may participate and use the benefit for the entire family.

C-Corporation owners can participate and sponsor a plan.

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