Flexible Spending Accounts
Flexible Spending Accounts (FSA) are available to businesses with two or more employees and enable employers and their employees to pay for a variety of medical and dependent care expenses with pre-tax dollars, as established by IRS Code Section 125. FSA plan designs can be customized and combined to meet the benefit needs of any company and its employees.
- 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
- 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)
Soldevila & Associates provides a wide array of FSA, HRA and HSA options. To get a quote for these services click here. For official tax information on HRAs, review the IRS Section 105 Notice.