NEW YORK, Oct. 16, 2018 /PRNewswire/ -- FSA administration company, Clarity Benefit Solutions, shares four tips for increasingFSA enrollment.
Flexible Spending Arrangements (FSAs) are an effective tool employees can use to pay for eligible expenses such as costs associated with vision, dental, orthodontia, and hearing products. It's likely that many employees may
Underscore that FSAs are employer sponsored. An employer is the one who sets up an FSA account. Employees simply need to contribute a portion of their regular paycheck to pay for their qualified expenses. Inform them that they have access to this account on day one since it is prefunded. Then, a portion of their paycheck reimburses their employer throughout the year.
Emphasize the fact that FSA funds are not pre-taxed. Employees who participate in an FSA will pay lower taxes, since employees are not paying tax on the monies they have set aside for the account. This will not only lower their tax brackets, it will increase their take-home pay.
Notify employees that FSAs pay for prescription and many over-the-counter drugs. FSAs pay for prescription medication, in addition to certain over-the-counter drugs—unusual with a typical health plan. This incredible option enhances an FSA's flexibility in how funds are used. An example of this benefit is insulin being an FSA-eligible expense.
Highlight the perk that major expenses can be paid off over time. Even if an employee uses all his or her FSA funds for the year in one day, he or she is immediately reimbursed. They then can pay allocations over the course of the year. Fortunately, incurring a big expense at the beginning of the year still allows employees ample time to pay off that expense. Also, at the end of the year, a two-and-a-half-month grace period allows an employee to request reimbursement for that year's expenses.
About Clarity Benefit Solutions: Clarity Benefit Solutions provides technology that makes the health insurance plan selection process fast, easy, and straightforward. For over two decades, we have provided clients with industry-leading technology, compliance, and exceptional customer service. Our offering is designed to save time and lower the costs of managing benefits while also promoting employee self-service and automated ACA compliance.
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SOURCE Clarity Benefit Solutions
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