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For New York State Business
CONTACT INFORMATION
11 Broadway Suite 440
New York, NY 10004
Telephone: 212 825-0055
Main Fax: 212 825-0955
Alternate Fax: 718 980-5676
Toll Free: 800-711-4911
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FSA - Flexible SPENDING Account
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USE IT OR LOSE IT!!! ..... Do you know what this means?
If not please read on!
From Wikipedia, The Free Encyclopedia
Set up a spending account. The money put into this account comes from the employees pay check before taxes.
Money in the FSA not spent will be lost. That may sound like a extremely negative, but flex plans can save you a lot of money even if all the money is not spent.
The FSA is a very valuable tool that allows you to put money back into the pocket/purse of both, the employer and employee, through tax savings. It's nicknamed the medical IRA.
Some of the Benefits for the employer:
- If the employer chooses to deposit funds into employees accounts - that money can be swept back or returned to the employer at termination or years end.
- Employer contributions are business expenses - 7.65% of employee contribution.
- FSAs are typically preferred by the employer and appreciated by the employees.
- *Debit cards are included (for an additional charge). Price varies by the size of your company, contact us for a free price quote. Most insurance company's offer free Debit cards.
- Employee retention is improved by providing this benefit.
- HR departments site this benefit at hiring time.
- You set the deposit limit for the employees.
- 2008 Contribution Limits Set by IRS:
The Internal Revenue Service (IRS) sets the contribution limit amounts for Health Savings Accounts. The new contribution limits for 2008 is $2,900 for those with individual (self-only) coverage and $5,800 for those with family coverage.
Catch-up contributions for ages 55 and older will be $900 in 2008.
* Debit cards are used in many ways by you and your employees. The following is a brief listing that the employer might choose from. Co-payments, prescription drugs and non prescription medication, child care, parking, transportation - the MTA here in NYC, metro North, pathtrains; and other benefits.
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Some of the Benefits for the employee:
- Employee contributions are optional (not mandatory for every employee to enroll, only a percentage of employees need to enroll).
- Enrollment dates are at pre-established at inception and renewals. so there is no mid-year enrollment, except by newly hired employees.
- Employee contributions are tax free - employees spend pre-taxed money only through this plan.
- This account IS NOT retained by employee upon termination - this is one of the reasons why if the employee's don't spend this money they will lose it.
- Employer contributions are optional - here is another reason why the money will be lost, if your company's money is not used, it is returned to the employer.
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Employee's save on their out-of-pocket health care expenses when they enroll in the Flexible Spending Account and on their child(ren) or dependent when you enroll in the Dependent Care Advantage Account. Savings that are typically not covered such as Aspirin, Tylenol, devices such as wheel chairs - (please click on the example of allowable expenditures and non allowible expenses for a more complete listing of covered/included and not covered/included expenses) are now covered.
FSAs can be used to pay for many types of medical expenses, even some expenses that are very often excluded in Health Plans.
These include:
- Prescription and over the counter drugs
- Deductible and Co-payment's
- Dental services, including braces, bridges and crowns
- Vision care, with the inclusion of eye glasses ,and lasik eye surgery
- Psychiatric and many psychological services
- Medically related transportation and Lodging
- and this list is growing
Please contact our office for additional information. We are only a telephone call or a click away.
Ask us about the benefit card that can be utilized for these purposes as well as transportation, parking, child care, and more, much more.
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Note: You must have established an FSA before incurring any tax deductible expenses or these expenses will not qualify.
From Wikipedia, The Free Encyclopedia
A flexible spending account (FSA) is a tax-advantaged financial account set up through the cafeteria plan of an employer in the United States. An FSA allows an employee to set aside a portion of his or her earnings to pay for qualified expenses as established in the cafeteria plan, most commonly for medical expenses but often for dependent care or other expenses. Money deducted from an employee's pay into an FSA is not subject to payroll taxes, resulting in a substantial payroll tax savings.
The most common FSA, the medical expense FSA (also medical FSA or health FSA), is similar to a health savings account (HSA) or a health reimbursement account (HRA). However, while HSAs and HRAs are almost exclusively used as components of a consumer driven health care plan, medical FSAs are commonly offered with more traditional health plans as well.
We have another brokerage (Marquis Brokerage) firm for the partners, owners and employees personal insurance, such as homeowners, rentals, coops, condos, auto, and many other forms of insurance.
www.Marquisbrokerage.com
email address: marquisbkg@aol.com
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