February 22, 2012
| Create Tax-Saving Opportunities for You and Your Employees |
Flexible spending accounts (FSAs) will allow employers and employees to expand the tax-saving benefits of a premium only plan (POP). They also enable copanies to provide superios health care benefits, increasing employee satisfaction and retention.
FSAs allow your employees to set aside a portion of their paychecks for health care and dependent day care expenses before taxes are calcukated. The more they take advantage of this benefit, the less you'll pay for payroll taxes, including Social Security and Medicare. Depending on your state, an FSA program may also reduce the cost of your workers' compensation insurance.
IRS regulations require that any unused FSA funds be forfeited at the end of each calender year. This encourages employees to carefully plan the FSA contributions in advance, giving you valuable quidance on how to fund the plan the the beginning of the fiscal year.
| Improve Your Employee Benefits For Less |
In addition to tax savings, FSA funds may be used to pay for health care expenses that insurance doesn't cover, such as annual physicals, co-payments, eye exams, glasses, orthodontics, prescriptions, some over-the-counter drugs and hosputal care.
Unlike health savings accounts, which build up gradually over time, the full value of a health care FSA is avialable at any time throughout the plan year...a valuable benefit in the even ot an unexpected expense or emergency.
FSA accounts can also be used to pay day care expenses for children, seniors, or other dependents
(dependent day care funds must be maintained in a separate FSA, and annual contributions are limited by the IRS)
For more information on Flexible Spending Accounts, contact your representative or visit www.my-benovation.com
