Medical Flexible Spending Accounts (FSA)
Added benefits for your employees. Lower taxes for you.
Why choose a Flexible Spending Account?
An FSA allows your employees to set aside money on a pre-tax basis to pay for eligible healthcare, dependent care, commuter and premium expenses.
Benefits to the employer
Employers who offer FSAs may experience a reduction in employer and FICA taxes, and employees who participate reduce their taxable wages. This results in lowered taxes for you with added benefits for your employees.
Which FSAs are available?
See which account option is best for your employees:
Healthcare Flexible Spending Accounts
Your employees can use pre-tax dollars to pay for eligible IRC § 213 healthcare expenses.
Dependent Care Account (DCA)
Employees get reimbursed for daycare expenses for children 12-and-under or for adult daycare expenses for a disabled spouse or IRS tax dependent.
Commuter Expense Reimbursement Account
Your employees can use pre-tax dollars to pay for eligible parking and commuter transit expenses for work.
Employer Services
We offer the following FSA services and reporting:
- Employee education materials
- Annual non-discrimination testing
- Personalized customer service
- Individual enrollment consultations with employees
- Group presentations
- Model Master Plan Documents
- Model Summary plan descriptions
Comprehensive reports include:
- Enrollment
Remember, when employees' taxable income is smaller, so are your tax expenses.
Healthcare Flexible Spending Account
Healthcare Flexible Spending Accounts can be used to pay for IRS eligible expenses found in IRC § 213(d). Eligible healthcare expenses can include copays, deductibles or coinsurance percentages and out-of-pocket expenses for vision, dental, prescription and medical care.
How does it work?
Employers determine the annual maximum dollar amount employees can elect, up to the annual IRS maximum amount. Employees who want to participate in an FSA must make an annual election by enrolling in the healthcare FSA each year. The annual election is divided by the number of payroll cycles during the plan year to determine a per-pay period amount. This amount is reduced from the employee’s income prior to taxes.
When healthcare expenses occur, employees have the options of:
- Submitting a completed claim form along with appropriate supporting documentation
- Using the participant portal
- Paying with their benefits card
- Setting up auto-pay to receive their reimbursement.
Claims are processed within 2-3 business days. Participants are issued a check or can opt to have reimbursement deposited into their bank account.
At the end of the plan year, employees will have a run-out period to request reimbursement for healthcare expenses that took place during the plan year. Any funds remaining in the account, after any eligible carryover amount, at the end of the run-out period will be returned to the employer.
Premium Only Plan - (POP)
A Premium Only Plan allows employees to have their premium for a qualified group plan reduced from their income on a pre-tax basis. Qualified group plans include medical, dental and vision premiums, as well as disability, and special cancer or hospital indemnity policies. The premium payments are deducted from the employee’s income and paid directly to the insurance carrier via the employer. This is not a reimbursement account.
How does it work?
If an employee elects to enroll in the Premium Contribution Plan, the premium for qualified benefits will be deducted from their income each pay period. As with your current process, you will then send premiums to the carrier(s) each month. The difference is the employee’s portion is deducted from their income on a pre-tax basis. Since the premiums are sent directly to the carrier(s), funds are not forfeited at the end of the year.
Like an FSA, employers and employees still save money each month because taxes are reduced.
Resources
Need to make changes to your account, determine eligibility or make payments? Check our Partner Resources page for additional forms and helpful information.
View All ResourcesContact BenefitHelp Solutions
To receive more information about our services, contact your agent or BenefitHelp Solutions Account Executive by email or phone: 503-412-4210 or 888-387-5440. For specific account information, please contact a Customer Service Representative at: 503-219-3679 or 888-398-8057.
Partner FAQs
Still didn’t find what you’re looking for? See
what other members are asking about below.
If a terminated employee has used more than contributed, can we deduct the difference from their final paycheck?
Not typically. While there are loopholes in the regulations that, if followed, would allow an employer to use the final paycheck rule (FPR), we recommend against it. Here’s why:
- Terminating employees with both under- and over-spent accounts would have to guarantee their annual elections with their final paycheck.
- The Uniform Coverage Rule under IRC § 1.125 would be violated in that the liability to the employer pursuant to the Risk-Shifting Rules (IRC § 1.125) would be eliminated.
- Employees would be denied the voluntary enrollment for continuing coverage under COBRA.
- Qualified beneficiaries would be denied their right to COBRA notices and benefits.
- Employers may be indirectly vulnerable to civil lawsuits under Oregon labor laws.
What is our run-out period?
Most plans have a 90-day run-out period. However, this can vary by employer. Please review your plan documents or contact us to confirm your run-out period.
How long do terminated employees have to submit claims?
Most employers allow terminated employees to submit claims 90 days after their termination date or 90 days after the end of month after their termination date. This can vary by employer. Please review your plan documents or contact us to confirm your termination run-out period.