1. Flexible Spending Accounts
Savings Employees Money

2. Flexible Spending Accounts (FSAs)
What is an FSA?
A flexible spending account is an employer- sponsored benefit account that allows employees to set aside pre-tax funds to help pay for eligible out-of- pocket healthcare expenses.
FSA benefits:
Lower taxable income (increased take-home pay)
Receive up to 30% savings on qualified healthcare expenses
NEW EASY FSA SYSTEM!
Starting this enrollment you will be able to link your insurance carriers to your FSA debit card. This will help you in not needing to submit receipts after the fact.

3. Why Should You Offer FSAs?
Sample Employee Savings*
Employee Savings
Federal tax rate
Annual FSA contribution
Estimated annual employee savings
15%
$1,500
$340
$2,500
$566
25%
$490
$816
33%
$610
$1,016
FSA Employee savings:
Lower taxable income: FSA contributions are made pre-tax – before federal, social security, and most state taxes, meaning:
Employees can reduce their taxable income and maximize their take-home pay
Savings on qualified healthcare expenses: Pre-tax contributions allow employees to save up to 30% when spending pre-tax dollars they otherwise wouldn’t have.
Time Savings: With the easyFSA system and mobile and online technology the FSA is as simple as signing up and spending your money.
*For illustrative purposes only. Based on 7.65% FICA. Individual tax situations may vary. Please consult a tax adviser.

4. How Do FSAs Work? Summary
An employee determines an annual election amount
Annual election amount is deducted evenly from each pay check – on a pre-tax basis
The full annual election is available on day 1 of the plan year for participants to spend on qualified out-of-pocket expenses
FSA debit card for spending
Online/mobile engagement tools
At the end of the plan year, participants can rollover up to $500 of unused funds into the future plan year
*You may also opt to offer a grace period in which employees are given a post-plan window to spend remaining funds

5. Employee Contributions
How do FSAs Work?
Employee Contributions
During open enrollment, employees plan and select an annual election amount
Annual FSA maximum: $2,700
Rule-of-thumb: Employees should estimate annual out- of-pocket healthcare expenses
Funding amount cannot be changed mid-year without a qualified life changing event
The annual election amount is divided evenly by paycheck, funds are deducted on a pre-tax basis and placed in the employee’s FSA
The full annual election is immediately available to the employee on day 1 of the plan year
Even though funds have not yet been withdrawn from future paychecks
*New to FSAs* Up to $500 of unused funds can be rolled forward into the future plan year.

6. How do FSAs Work? Qualified Expenses
Participants can use tax-free contributions to pay for qualified healthcare expenses
Qualified expenses include:
Co-pays, coinsurance, deductibles
Dental and orthodontia
Eye exams, contact lenses, eyeglasses
Prescriptions
Over-the-counter medical supplies
Lasik
And more! View the full list of eligible expenses:
Participants can receive up to 30% savings on eligible expenses, thanks to the nature of their tax-free contributions

7. How do FSAs Work? Debit Card Spending
Debit cards give participants easy access to FSA funds
Works just like a standard debit card, but funds are spent from the employee’s FSA
Real time, on-demand access to funds
Eliminates cash purchases & reimbursement hassles
Point-of-sale purchase, provider payment, direct deposit employee reimbursement
Debit cards can be used to purchase qualified healthcare products/services at:
Physician & doctor offices
Hospitals
Pharmacies
Opticians / vision care locations
Dental offices
And, even qualifying retail stores!

8. The New FSA Funds Rollover Policy
How do FSAs Work?
The New FSA Funds Rollover Policy
In 2013, the US Department of Treasury modified the long-standing FSA ‘use it or lose it’ rule
FSA participants can now rollover up to $500 of unused funds into the future plan year
Future year maximum election is not impacted (remains $2,700)
FSA Participant benefits:
Greater flexibility - No need to precisely budget & plan healthcare expenses
Lower risk – Employees reduce the risk of losing money
Reduced waste – No more reckless end-of-year spending
More savings – Less forfeiture risk = higher elections and tax savings

9. 24/7/365 Account Access & Management
Online FSA Access
24/7/365 Account Access & Management
Online account access for FSA participants and their family
Check your balance
File a claim
Access to account information & transaction activity
Communication and alerts management
Replace/re-order debit cards
FSA features:
Planning tools & calculators
FSA statements & transaction history
Reimbursement requests
Bill payment

10. Mobile FSA Access For FSA participants ‘on the go’:
Supports Apple and Android smartphones and tablets
Available via the Apple App Store & Google Play
Participant engagement features:
View account balances
View transaction history
Attach receipts
Edit alerts
File a Claim
Contact administrator

11. Questions? Call