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.

EMPLOYER ADVANTAGES

• 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

EMPLOYEE ADVANTAGES

• 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.