Flexible Spending Accounts offer substantial tax savings for both employees and employers. FSA plans allow employees to set aside tax free money to pay for out of pocket medical and dependent care expenses. Since the FSA funds are deducted tax free, the employee’s taxable income is lower so employers save on FICA taxes.
Benefits of FSAs:
- Employers save 7.65% in FICA taxes on every dollar employees contribute to an FSA.
- Employees get an "instant raise" in the form of tax-savings.
- Employees enjoy the peace of mind that money for their health needs is there when they need it -no worrying about paying for unexpected (or expected) medical expenses.
All tax free accounts save you and your employees money, but the added benefits come from which company you choose to administer your plan. With eflex you get industry leading service, which means we're here anytime you need us, employees get their money back faster, and we have some of the lowest claims error rates in the industry. Reliable, trustworthy, available and lucrative -what more could you ask for?
Want more information? Download our FSA flyer to learn more.
Ready to see how much an eflexFSA can save you? Crunch the numbers with our Savings Calculator.
Contact us today to start saving your company and your employees money.
To find out more about the main types of FSAs click on the links below: