Why choose FSA?
FSA is a consumer driven health plan option often funded by the employee, but can be funded by the employer. The account is owned by the employer, while funds are owned by employees.
This means FSAs are chock full of benefits for employers and employees alike:
- Provides tax savings for both.
- May increase employees’ awareness of out-of-pocket health care costs.
- Helps employees manage those out-of-pocket costs.
- Because FSAs are a common benefit, you can remain competitive in your quest to attract great employees.
- Increases cash flow needs by having the annual election available from the first day of the plan year.
Ensuring compliance with an FSA.
Consumer driven health care plans are susceptible to fines if not following regulations. This checklist helps you identify what your FSA needs to do to avoid penalties:
- Offered only to employees eligible for a group health plan.
- Actual participation in the plan is not required.
- The maximum benefit doesn't exceed:
- Two times the employee's annual health FSA election, or
- The employee’s annual health FSA election plus $500.
- Has had its eligibility checked to ensure it is consistent with the medical plan.
- Plan documents reflect the treatment of positive end-of-year account balances.
- Employees have been updated to show max health FSA contribution limits.
- Is a COBRA-eligible benefit.
Good news: we’ll help with that list.
That checklist may seem daunting and that’s why PrimePay is here. We’ll help you through account setup and funding processes.
If there’s ever an issue, don’t worry! We will work with the bank funding the account, you and the account holder.
Plus, we offer POP for free with any of our consumer driven health plans.