FLEXIBLE SPENDING PLAN ADMINISTRATION YOU HAVE A PARTNER IN SALTMARSH
Since 1944, our business has been built upon the principles of honesty, integrity, accuracy and the highest level of service to our clients and our community. From plan design to ongoing administration, our objective is to provide prompt, accurate and reliable service for both you and your participants.
EMPLOYERS | WHY PROVIDE THIS BENEFIT?
Section 125 Flexible Spending Accounts offer employees a substantial tax savings on eligible premiums and out-of-pocket healthcare expenses. In addition to the employee’s savings, employers benefit from FICA tax savings which offset the administrative cost to offer the plan. Employers may also promote as part of their employee benefits offering to attract and retain top talent.
RESOURCES
The cornerstone to a successful plan is education. Visit our website to access helpful tools and resources that may help you estimate your tax savings and answer frequently asked questions.
PLAN TYPES
- MEDFSA: Medical Flexible Spending Account
- DEPFSA: Dependent Care Assistance Account
- HRA: Health Reimbursement Arrangement
- HSA: Health Savings Account
BENEFITS AT YOUR FINGERTIPS
Take Care Debit Card
Gone are the days of waiting for reimbursement! Your participants will recieve a Take Care® card that allows for fast and convenient point-of-sale payment. Visit mytakecareplan.com to learn more about benefits.
MyFlex Mobile App
Managing your benefits has never been easier. Use the MyFlex mobile app on your smartphone or tablet to check your account balance, view elections, upload receipts and file claims on the go.
COMPLIANCE SERVICES
Plan Documents
Section 125/POP, WRAP, FSA, HRA, HSA
5500 preparation and filing for health and welfare plans
Judy Fryer
judy.fryer@saltmarshcpa.com
Manager, Flexible Benefit Plan Services
EMPLOYER BENEFIT
SAMPLE COMPANY
- 40 employees paying an insurance premium of $200/month
- 16 employees participate in the health FSA plan, contributing $62.50/month
- 8 employees participate in the dependent daycare FSA plan contributing $417/month
WITHOUT the Plan
| Annual Payroll | $1,200,000 |
| FICA Tax | 91,800 |
| NET PAYROLL | $1,291,800 |
WITH the Plan
| Annual Payroll | $1,200,000 |
| FICA Tax | 91,800 |
| 125 FICA Savings | - 11,320 |
| NET PAYROLL | $1,280,480 |
RESULT - $11,320 SAVINGS
The plan results in an annual FICA savings of $11,320 because all costs are taken out pre-tax.
EMPLOYEE BENEFIT
SAMPLE EMPLOYEE
Gross Monthly Wages: $2,000
Participates in:
- Section 125 to pretax their insurance premium of $100
- Health FSA plan contributing $60/month
- Dependent daycare FSA plan contributing $240/month
WITHOUT the Plan
| Gross Earnings | $2,000 |
| FICA, Federal, State Taxes | - 500 |
| Adjusted Gross Earnings | $1,500 |
| Insurance Premium | - 100 |
| Health & Daycare Expenses | - 300 |
| NET TAKE HOME | $1,100 |
WITH the Plan
| Gross Earnings | $2,000 |
| Insurance Premium | - 100 |
| Health & Daycare Expenses | - 300 |
| Adjusted Gross Earnings | $1,600 |
| FICA, Federal, State Taxes | - 400 |
| NET TAKE HOME | $1,200 |
RESULT - $100 SAVINGS PER MONTH
The plan saves FICA, Federal and State taxes, resulting in an additional $100 take home/month.
