It is good business sense
that, to attract the best employees, you need to offer the best
benefits. That doesn't mean that your benefits plan needs to operate
on a Fortune 500 Company budget. The tax code allows for several
different types of accounts to be set up that pay for certain costs:
- Flexible Spending
Accounts (FSA) allow employees to place portions of their gross
salaries into separate accounts. These accounts can be spent on
items and amounts not covered by already-existent insurance plans.
- Employer-Funded Health
Reimbursement Accounts (HRA) are funded by the employer, and allows
employees to submit claims for certain allowable expenses that
qualify as non-taxable. He or she is reimbursed from the HRA account.
- Health Savings Accounts
(HSA) allow employees, employers, and outside parties to contribute
to a fund that can pay for certain expenses. This money can be
carried over year to year, and willed. This type of account is
available only in conjunction with high-deductible insurance coverage.
Categories of coverage,
depending on plan type, can include:
- Legal expenses
- Group life insurance
- Dependent care expenditures
Why Choose a FLEX Plan?
- Employees save money
because reimbursements are not, and will never be, taxed.
- Employers save money
because the amount set aside is not subject to FICA and unemployment
These plans are designed
to offer employees and employers maximum flexibility and spending
power. However, to be successful, these plans must be thoughtfully
designed, and carefully managed.
Here's where we come
HEG offers extensive
experience in effective management and control of FLEX plans, we
well as the communication necessary to make a transition to FLEX
plans painless for employers and employees. We will work directly
with your payroll department or service, will provide detailed explanation
of benefits, and will process claims accurately and efficiently.
We guarantee that you will talk to a real human being who will work
with you in a personable, friendly, and efficient way.
Our services include:
- Plan design and implementation
- Employee communications
- Claims processing
- Funds accounting
- Employee notices
- Management Reports
To aid in a transition
to FLEX, we suggest that FLEX plans overlay existing benefit plans.
This way, other plans can be modified to save costs. For example,
a dental plan may be changed to eliminate orthodontic coverage;
those who need that service can pay for it through their FLEX plan.