Advanced Flex Plan Administration with the Human Touch
Flexible Spending Account
A Flexible Spending Account (FSA) is an employee benefit that enables participants to set aside pre-tax dollars from each paycheck to pay for eligible medical and/or dependent care costs.
Components of the FSA
FSA Participants may choose to enroll in the Health FSA, Dependent Care FSA, or both before the start of each Plan Year.
Covers eligible medical, dental, and vision expenses for the employee, spouse, and dependents.
The participant’s entire yearly Health FSA election is available to use on the first day of the Plan Year.
Dependent Care FSA
Covers dependent care while the employee is at work.
The participant’s Dependent Care FSA funds are available only after being deducted from his or her paycheck.
Unused funds at the end of the Plan Year are subject to carryover limits
How an FSA Saves
- Since participant contributions reduce taxable income, the Employer’s FICA/FUTA is reduced.
- Contributions are pre-tax. This can save the participant 25%-40% on eligible expenses.
Employees who are eligible for the Group Health Plan are eligible to enroll in the FSA. Employees can join the FSA without enrolling in the Group Health Plan.
Who Can Contribute
Participants and Employers can contribute to an FSA.
How it Works
The Employer hosts Open Enrollment with employees and enrolls those who wish to sign up for the FSA.
The Employer deducts pre-tax contributions from each participant’s paycheck. These contributions are held by the Employer.
EMPOWER administers the Plan and sends reimbursements to employees. The Employer only pays for expenses used by employees.
Employees enroll in the FSA and choose their annual elections.
The Employer deducts pre-tax contributions from each participant’s paycheck.
Participants pay for eligible expenses with the EMPOWER Visa Debit Card or seek reimbursement from EMPOWER.
Dependent Care FSA
EMPOWER Can Tailor an FSA to Meet Your Needs
Employers can customize their plans with many options, including:
- EMPOWER Visa Debit Card
- Direct Deposit
- Check Register sent to Employer
Employers can choose how unused funds can be used in the next Plan Year.
Employers can choose the maximum annual election limits for participants.
Want the Latest Contribution Limits and Guidelines?
EMPOWER’s Benefits Solutions Guide takes the guesswork out of benefits by providing a comprehensive synopsis of each plan type, as well as comparisons and sample scenarios