Published October 2009
Flexible Spending Accounts are an additional benefit provided by employers for employees to cover the costs of medical expenses that are not reimbursed by insurance. In addition to being a great benefit for employees, an FSA plan can also produce cost savings for the employer as well.
Ever heard of a benefit plan that saves you money? Every dollar committed to an FSA plan saves the employer the matching Social Security and Medicare tax (7.65%). Depending on participation and election amounts clients can yield more dollars in tax savings than the fees they paid to administer the FSA plan.
Here are some examples of BASIC clients experiencing positive cash flows from their participation level and resulting tax savings.
|Number of Participants||Employee Contributions ($)||Employer FICA Savings ($)|
You can achieve larger tax savings by increasing participation as well as the average election per participant. BASIC offers a variety of methods of education for this purpose. Contact us today to discuss your options.
Call 800-444-1922 ext. 3 to be put in touch with a consultant in your area. Or you can request a proposal at this webpage https://www.basiconline.com/solutions/Resources/proposal/