Flexible Spending Accounts (FSAs) 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. Applied Benefit Concepts designs FSA plans that 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)