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FSA Flex Plan Services

Saving your employees money with Flexible Benefit Plans.

FSA Flex Plan Services

Saving your employees money with Flexible Benefit Plans.

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Did you know that there is a benefit you can offer that can actually save your employees money?

online payroll company in Grand Rapids MISection 125 Plans, commonly referred to as Flexible Benefit Plans are an essential part of any employer group health insurance and ancillary benefits administration program. Section 125 of the Internal Revenue Code allows employees to purchase health insurance and other ancillary benefits tax free. A Section 125 Plan legally allows your employees to pay their portion of medical insurance premium and other ancillary benefits premiums using pretax or tax-free dollars.

Both Employers and Employees Benefit from a Section 125 Plan. Employees avoid paying any tax (FICA or income) on premiums and deductions through a Section 125 Plan. Employers that offer a Section 125 Plan benefit by eliminating the 7.65% matching FICA taxes on every dollar deducted from employee wages through a Section 125 Plan. To calculate your estimated savings.

The ONLY Benefit That Can Actually SAVE Money! 

With this plan, employees can turn “after tax” expenses to “pre-tax” expenses for items such as health care premiums, out-of-pocket medical expenses and dependent care. Employers also save money by reducing their payroll tax expense for FICA and Medicare matching and FUTA taxes. On average, employees with flexible benefit plans save $300 per year in payroll taxes.

Types of Plans

Both Employers and Employees Benefit from a Section 125 Plan. Employees avoid paying any tax (FICA or income) on premiums and deductions through a Section 125 Plan. Employers that offer a Section 125 Plan benefit by eliminating the 7.65% matching FICA taxes on every dollar deducted from employee wages through a Section 125 Plan.  To calculate your estimated savings, click here.

Employee Contribution Plans:

Premium Only Plan, generally referred to as a POP Plan is a written plan document that allows employers to deduct premium contributions from employees on a pre-tax basis through salary reduction.  Premiums may be for health insurance, dental insurance, vision insurance, accident insurance, and cancer insurance, etc.  In addition, employee contributions to a Health Savings Account may also be included in your POP Plan.

Premium Only Plan with HSA, all of the benefits of a POP Plan with the added ability to deduction contributions to a Health Savings Plan on a pre-tax basis through salary reduction.

Health FSA Plan is a written plan document that allows employers to deduct premium contributions as a POP Plan does, but also allows employers to deduct out-of-pocket medical expenses on a pre-tax basis through salary reduction.

Limited-Purpose Health FSA Plan is a written plan document that allows employers to deduct premium contributions as a POP Plan does, but also allows employers to deduct out-of-pocket dental and vision expenses, as well as medical expenses that exceed the employees deductible on a pre-tax basis through salary reduction.  A Limited-Purpose Health FSA Plan is used when the employer also offers a Health Savings Account (HSA).

Dependent Care FSA Plan is a written plan document that allows employers to deduct premium contributions as POP Plan does, but also allows employers to deduct out-of-pocket dependent care expenses on a pre-tax basis through salary reduction.

Individual Insurance Premium FSA Plan is a written plan document that allows employers to deduct individual insurance premiums on a pre-tax basis through salary reduction.  The individual insurance premiums are for insurance that is generally billed to the employee directly and not part of a group plan. 

Employer Contribution Plans:

Health Reimbursement Arrangements, generally referred to as HRA's, are defined contribution plans that are owned and controlled by employers for the benefit of employees. There are 100% funded by employers.  HRA's offer many plan design options that allow employers to meet their benefit goals.

Health Savings Accounts

What is a Health Savings Account?

A health savings account (HSA) is a tax-advantaged medical savings account available to taxpayers who are enrolled in a High Deductible Health Plan (HDHP).  Employers and employees can contribute to an HSA tax free, earnings on investments within the HSA are tax free and withdrawals from the account to pay for eligible expenses are tax free.  Each year unused funds remaining in the account gain interest or earnings tax free and continue to be available for future use.  Once an individual reaches age 65, distributions can be for any reason - they are not limited to eligible expenses.

What are the current HSA Limits?

2014                            2015

Individual:                               $3,300                       $3,350

Family:                                    $6,550                       $6,650

Individual Catch – Up:          $4,300                       $4,350

Family Catch – Up:               $7,550                       $7,650

How Can FlexChecks Assist with your HSA?

Our HR management company can assist with your Health Savings Account in three ways:

  1. FlexChecks can create or modify your Section 125 plan documents to include an HSA component.  This allows employee contributions to be deducted from pay on a pre-tax basis saving employees from 22-40% on every dollar contributed to the plan, AND employers save 7.65% on employee contributions by reducing the FICA tax matching.
  2. FlexChecks has partnered with HSA Bank to offer administration of your employee deposits to their account.  HSA Bank provides banking convenience to employees while FlexChecks provides management of the funds by providing:
  • Online participant portal to manage all flex plans in one convenient place, including Health FSA, Dependent Care FSA, and HSA.
  • Account balance management and notifications
  • Moblie application
  • Multi-purpose debit cards
  1. FlexChecks can manage reporting of employee and employer HSA contributions on your employee W-2's as required by the IRS.
Online Account Access

When your flex plan service is administered by FlexChecks, employees have online access to their flexible benefit account anytime, anywhere! 

  • Log into Account
  • Submit a Claim
  • 24-Hour Turnaround
  • Direct Deposit into Account

 

Out-of-Pocket Medical Expenses

Eligible medical expenses that are covered by a Flex Plan Solution in Michigan include:

  • Prescription Drugs
  • Medical Equipment
  • Hearing Expenses
  • Dental and Orthodontic Care
  • Vision Care
  • Therapy Treatments
Dependent Care Expenses with a Flex Plan Solution

Employees can enroll in the Dependent Care plan if they spend money on the care of dependents while at work. An employee must be obtaining care of an eligible dependent while working. Who is considered eligible and dependent?

  • A child under the age of 13 (who qualifies as your dependent for income tax purposes)
  • A legally dependent adult who is incapable of self-care and spends at least 8 hours per day in your home.
How it Works

With FlexChecks, offering Flexible Spending Accounts to your employees is fast and easy. In just a few simple steps, you and your employees will be enjoying the tax savings of Flexible Spending Accounts with the added benefit of 24-Hour reimbursement and online account access.

With Michigan Flex plan solutions, it’s win-win for everyone!

At FlexChecks, we offer 5 simple steps to saving you money! 

Decide on your plan details
Our Michigan HR management company is there every step of the way to
help work out all of the details of your Flexible Spending plan. We ask the questions and provide the plan documents.

Hold an employee meeting
Hosting an informational meeting about your new benefit offering increases employee involvement, which in turn, helps save you more money. A member of the FlexChecks staff will come to you and host an on-site meeting with all of the information you and your employees need for maximum participation!

Open enrollment begins
There are no headaches during open enrollment
for you or your employees with FlexChecks. Employees can enroll online or with paper. When all of your forms are turned in, just send along to our friendly staff and we will enter your information. All of the reports you need are available online,
24 hours a day, 7 days a week!

Save Money on Taxes
During the plan year, employee contributions are deducted before any and all taxes. Your employees save money because their gross income is less and as the employer, you save on the social security taxes.

Online Access for Everyone
When you use FlexChecks Flexible Spending Accounts, you and your employees automatically have access to our Wealthcare Portal. On the Administrator side, you are able to track employee balances and run important payroll and tax reports. Your employees also have individual access to check their account balance, submit a claim, order a debit card and much more!

Convenient Options

Convenient options for both employer and employee!

Administrator Portal 

  • Contributions automatically uploaded for FlexChecks Payroll Clients.
  • View Participant claims/denials.
  • Receive Auto-Email for funding.
  • Many reporting options.

Participant Wealthcare Portal

Filing claims has never been easier! Participants have online access to their flexible benefit account anytime, anywhere!

  • Log into Account
  • Submit a Claim
  • 24-hour Turnaround
  • Direct Deposit into Account

We C.A.R.E (Clients Are the Reason we are Employed) & we GUARANTEE you will be happy!

Send us a message and let us show you how we can help. It's our guarantee! 

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