Flexible Benefit Plans
Take the Complexity out of Flexible Benefits Administration
See how isolved makes it easy to offer benefits like flexible spending accounts (FSAs) to lifestyle spending accounts (LSAs), all managed in one—boost satisfaction and simplify your HR processes.
What are flexible benefit accounts?
Flexible benefit accounts give employers and employees opportunities to save on taxes or simply take advantage of creative benefit structures to improve employee wellness. isolved provides comprehensive account-based administration to maximize employee experience and benefit reimbursements, including:
Anywhere, anytime access to employee plan information or support services
Quick and easy reimbursement for out-of-pocket expenses
Seamless setup and distribution of debit cards for accessing plan benefits
Full employer visibility and reporting capabilities to improve efficiency and reduce errors
Assistance with initial plan design and management to meet evolving business need
Your Options for Flexible Benefit Accounts
Flexible Spending Accounts
A flexible spending account (FSA) is an employer-sponsored benefit plan that lets employees deduct money from their pay on a pre-tax basis. By offering an FSA, employers save payroll taxes, while employees save on FICA, federal and state taxes.
Participants can use pre-tax dollars in the FSA to pay for or reimburse eligible out-of-pocket medical and dependent care expenses. The result is lowered taxes for you, with added benefits for your employees.
Health Reimbursement Arrangements
A health reimbursement arrangement (HRA) is a part of the growing trend toward greater consumer healthcare responsibility. With this plan, the employer promises to reimburse eligible, out-of-pocket medical expenses incurred by the employee or their dependents.
Advantages of offering an HRA include tax deductible reimbursements for employees, employer-set limits to control risk and the ability to retain any allocated HRA dollars that are unused by employees.
Health Savings Accounts
A health savings account (HSA) is a tax-advantaged savings account paired with a high-deductible health plan (HDHP) that gives your employees a simple way to manage healthcare costs. HSA funds can be used to cover qualified expenses.
For employers, HSAs will add flexibility to your health and retirement benefits, as well as reduce FICA and FUTA payroll taxes. Offering an HSA with an HDHP can also lower health insurance premiums, saving your business money while supporting employees’ financial well-being.
Transit & Parking Benefits
The daily commute can put a real strain on employees. Whether they're paying for parking or covering the cost of a transit pass, expenses can add up fast. A transit and parking plan helps by letting them set aside pre-tax funds to pay for qualified transportation costs.
Transit plans are easy to set up and use, and participants receive a debit card to pay directly for eligible, instead of having to wait for reimbursement.
Lifestyle Spending Accounts
A lifestyle spending account (LSA) is an employer-funded benefit that gives employees flexible stipends to use on everyday needs beyond traditional healthcare. LSAs can cover categories such as fitness memberships, mental health apps, caregiving, commuting and more.
For employers, LSAs are a modern way to support well-being, boost engagement and strengthen culture. By tailoring categories and allowances to your workforce, you provide meaningful perks that help attract and retain talent.
Flexible Benefit Plans FAQs
Get quick answers to common questions about flexible benefits plans—from how they work to what HR teams need to consider. Built for HR leaders exploring ways to align benefits with employee needs and organizational goals.
isolved Benefit Services
Managing benefits can be complex and time-consuming. Let isolved help you stay compliant while giving employees the benefits they want and need.