Flexible Benefits Account Administration
Account-based plans can become a competitive advantage for employers seeking to provide employees with the best coverage and tax-preferred options available—enabling a more robust benefit portfolio. isolved provides comprehensive account-based administration to maximize the employee experience and benefit reimbursements including options for FSA, HRA, HSA, Lifestyle Spending Accounts, Commuter, Transit, and Parking, and more.
What are flexible benefit accounts?
Flexible benefit accounts give employers and employees opportunities to save on taxes or simply get creative in some of the benefits an employer offers. Administering these accounts can be time consuming and complex. 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
Below are the different options employers can offer for flexible benefit accounts.
FSA
A Flexible Spending Account (FSA) is an employer-sponsored benefit plan that allows employees to deduct money from their pay on a pre-tax basis. By offering an FSA, the employer saves payroll taxes, and the employee saves FICA, Federal and State taxes.
Participants use pre-tax dollars in the Flexible Spending Accounts (FSA) to pay for or reimburse themselves for eligible out-of-pocket medical and dependent care expenses.
Employers that offer FSAs may experience a reduction in employer and FICA taxes, while employees who participate reduce their taxable wages. The result is lowered taxes for you, with added benefits for your employees.
HRA
A health reimbursement arrangement (HRA) is a major part of the growing trend toward greater consumer health care responsibility. This plan is offered by an employer in which the employer promises to reimburse employer-defined eligible, out-of-pocket medical expenses incurred by the employee or their dependents.
Some of the advantages to offering an HRA include:
- Reimbursements for the HRA to employees are tax deductible for the employer
- Limits of the HRA are defined by the employer, controlling maximum risk
- Unused HRA dollars can be retained by the employer
HSA
A Health Savings Account (HSA) is a tax-advantaged savings account that is used in combination with a High Deductible Health Plan (HDHP) and gives your employees a simple way to manage health care costs. They can use the HSA funds to cover qualified expenses.
The HSA will help you to add depth and flexibility to your employee health benefits and retirement plans, as well as reduce FICA and FUTA payroll taxes. You will save on health insurance premiums by offering HSAs along with high-deductible health plans.
You’ll have secure and easy-to-use online self-service portals accessible to you 24/7/365, while also going green with paperless online claims, direct deposit reimbursement, and electronic statements.
Transit & Parking
The daily commute to and from work can put a financial strain on your employees. Whether they drive their own vehicles and have to pay for costly parking expenses, or take public transportation and fork out money for a pass, the costs can really add up. A transit and parking plan allows your employees to set aside funds on a pre-tax basis to pay for qualified transportation expenses.
Transit plans are easy to set up and use, and participants will receive debit cards that allow them to pay for the expenses with the funds they set aside, instead of having to wait for reimbursement.
Lifestyle Spending Account (LSA)
Health and wellness are two hot topics in today’s world, with a renewed focus on physical and mental health.
Many employers are offering wellness programs and encouraging their employees to adopt healthy habits and even offering rewards to those who follow through. With a lifestyle spending account, you can make it easier for your employees to pay for the expenses associated with some of these activities.