Is It Hard to Offer an FSA to Your Employees? (Spoiler – It’s Not!)
You’ve probably heard the phrase “attract and retain top talent” more in the last year than ever before, as many employers are still struggling to find quality candidates for their open positions. As we’ve highlighted in the past, employees want more out of their job than just a salary. In fact, employers may risk falling behind by not offering certain benefits like Flexible Spending Accounts (FSA). According to AvacareMedical, the National Business Group on Health’s study showed that 66.3% of employers offered FSAs to their employees, up from 52% in 2015. To keep up with competitors, you may want to add an FSA to your benefits package. But the question remains, is it hard to offer an FSA to your employees?
As with anything governed by IRS regulations, setting up FSAs for employees does involve multiple administrative and legal steps. That’s why so many employers choose BASIC as their third-party administrator to handle plan set-up and administration for them!
Without a trusted administration partner, employers are left to fend for themselves while setting up their FSA plans. They have to choose which types of FSA to offer, each with their own rules and regulations, keep proper documentation which can become overwhelming, ensure effective communication with employees regarding the plan’s benefits, rules, and processes, and that’s just the tip of the iceberg. Noncompliance with the IRS can cost an employer severely.
Is it expensive to offer an FSA to your employees? No! In fact, a mature FSA plan can yield more dollars in tax savings than it costs to administer your plan!
So, is it hard to offer an FSA to your employees? Not if you choose BASIC as your FSA Administration partner!
BASIC makes it easy to offer any type of FSA, including Full Healthcare FSA and a Limited Purpose FSA (that integrates with a Health Savings Account). BASIC also offers Premium Only Plans and Dependent Care Assistance Programs (DCAP). With over 30 years as a leader in the benefits industry, BASIC takes on the administrative and compliance burden when setting up and maintaining your plan(s) so you can spend your time on what matters – your employees!
With BASIC, your FSA along with other plans is offered on our state-of-the-art benefits platform Consumer Driven Accounts (CDA). With all benefits integrated on one system, you can easily choose to add additional benefits whenever you like, with no extra administrative hassles on your end! Plus, BASIC CDA now includes Continuation Management. Say goodbye to multiple complex systems and enjoy over 30 in-demand benefit accounts and continuation services (like COBRA) all on the CDA platform.
