The Section 125 Premium Only Plan (POP) saves the employer and its employees money by reducing payroll taxes. It works by making one simple adjustment in the payroll process: Employees pay their portion of insurance premiums on a pre-tax basis. Qualifying premiums may include an employee's share of employer-sponsored health, dental, disability, accident and group-term life insurance. The POP cuts your client’s taxable payroll by reducing the employees’ taxable income. So, both your clients and their employees pay less in taxes.
|Employer Payroll Tax Savings
with EMPOWER Flex
|Health care expenses||0||-3,000|
|Dependent daycare expenses||0||-10,000|
|FICA tax (7.65%)||$22,950||$20,120|
EMPOWER’s Debit Card… Convenience & Higher Participation!
EMPOWER’s VISA Debit Card offers employees total convenience. The debit card increases plan participation because the paper work hassles are almost non-existent. In fact, in groups which use EMPOWER’s Debit Card, 90% of flex eligible items are purchased using the card with no need to file a paper claim. Employees should keep all receipts in case we request them or if they are needed for future IRS verification.
Unlike some administrators, EMPOWER provides unlimited debit cards free-of-charge.EMPOWER’s VISA Debit Card may be used to easily access Flex Plan funds. The Debit Card may even be used for some portions of an HRA account. Due to the Debit Card’s convenience, plan participation generally increases 50% to 100% in groups which offer it. This means substantially more FICA tax savings for the Employer.
Following are some Debit Cards facts:
The Debit Card is linked to a checking account established by the Employer. Debit Card swipes and paper claims are paid from this account (EMPOWER imprints the Employer’s bank account information on its blank check stock to pay paper claims). The IRS requires that non-medical retail merchants such as grocery stores, discount stores and warehouse clubs must implement an Inventory Information Approval System (IIAS) which identifies FSA eligible items. The IIAS is a point-of-sale system which verifies that the item is on a list of Flex eligible items and may be paid. Great for the Employer & Employees!
In today’s competitive job market, Employers are looking for ways to enhance their benefits to attract and retain the best employees. Offering an EMPOWER Flex Plan, HRA or HSA which includes the Debit Card is a great way to do that. Employees love the convenience and ease of easily accessing their plan funds.
The following are some of the EMPOWER Debit Card benefits:
Employees’ Debit Card Benefits
Employers’ Debit Card Benefits Increased 7.65% FICA tax savings because more employees sign up. Increased FICA tax savings because employees increase their annual contributions.
Now Your Client’s Employees Submit Claims & Receipts With a Cell Phone!
Participants with an iPhone, Android or other smart phone device may download the free EMPOWER MyFlexMobile App. This Application allows the participant to use his or her cell phone to view an account balance and submit a claim or receipt with no need to submit a paper claim. Participants with an iPhone, iPad, iPad Mini or iPod Touch may download the App at the iTunes Store. Participants with an Android or other smart phone will visit the Google Play Store to download the App.
EMPOWER gives Your Client’s Employees Instant Email or Text Notifications!
Participants automatically receive an email notice when EMPOWER receives and/or processes a claim and when further documentation is required. Participants may also sign up to be notified via text.
Web Access for Your Client’s Employees
Employee Web Account Access. Employees will be able to access complete account balance information online at EMPOWERFlex.com. Employees setup a user name and password to establish their secure account. At the website, employees may view balances, download claim forms, complete an online claim form or email us.
“Human Touch” for Your Client's Employees. With EMPOWER, your client's employees aren’t just numbers on a spreadsheet, they’re real people. That’s why we answer the phones live and respond to emails promptly. Your client and its employees are valuable. We treat them that way.
Web Access for Your Employer Client
Employer Web Account Access. Your employer client may access complete plan information 24/7 at EMPOWERFlex.com. Once your client establishes a user name and password, he or she will be able to perform a full range of functions like managing eligibility, ordering Debit Cards, downloading forms and viewing a full range of reports. Some of the reports your client will find the most useful include the Check Register, Debit Card Settlement and Year-to-Date Reports.
“Human Touch” for Your Client. With EMPOWER, your client is not just a number. Sometimes, especially at first, a new Flex Plan can be a bit confusing. That’s why we answer our phones live and respond to emails promptly. The employer’s time is valuable. We don’t want them to waste time waiting on hold.