Flexible Spending Accounts (FSA)
A Flexible Spending Account (FSA) is an employer‐sponsored benefit plan that allows employees to deduct money from their pay on a pre-tax basis. By offering an FSA, the employer saves payroll taxes and the employee saves FICA, Federal and State taxes.
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As health care expenses continue to increase and challenge everyone's budget, you can offset increasing health and dependent care costs with an FSA.
isolved Benefit Services FSA Administration allows your employees to set aside a portion of their earnings on a pre-tax basis to pay for qualified medical expenses and dependent care expenses. You save 7.65% on every dollar deducted pre-tax through a cafeteria plan. The following illustration shows how your savings can add up:
| Total Participants | Avg. Funding Per Participant | Total FSA Contributions | Employer FICA Tax Avoided* |
|---|---|---|---|
| 30 | $1,725 | $51,750 | $3,958.88 |
| 100 | $1,725 | $172,500 | $13,196.25 |
Average contribution amount from 2011 Mercer Survey of National Employers.
**FICA calculated at full rate of 7.65%.
An isolved Benefit Services FSA Includes:
- Online Resource Center for Participants and Employers
- Web and call center support
- iFlex Mobile app
- Proactive customer service maximizes employee benefit
- Debit cards
- Quick reimbursement of out-of-pocket expenses
- Full reporting capability for employer
- Plan design assistance
- Over 7,500,000 claims processed for over 2,000 customers
- Summary Plan Description
- Online employee enrollment
- Online employer reports
- Online nondiscrimination test
- Online employee enrollment
- Direct deposit
- Daily reimbursements
Plan types include:
- Health Care FSA
- Limited Purpose FSA (in conjunction with a HSA)
- Dependent Care FSA
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