If you’re a first-time medical FSA participant, you may not be familiar with FSA definitions and rules. We’ve provided a list of the top things a first-time medical FSA participant should be aware of in order to take full advantage of their FSA. What is a Medical Flexible Spending Account (FSA)? A medical FSA...
A dependent care flexible spending account (FSA) lets participants set aside pre-tax dollars to help pay for dependent care. Contributing to this benefit reduces taxable income and spreads the benefits of pre-tax dollars throughout the year, helping individuals save 30 percent or more (based on their tax rate) on dependent care costs. Dependent Care...
The season for filing taxes is upon us once again. We’re getting closer to the deadline for filing for 2023. We wanted to share a few tips and reminders about health savings accounts (HSA) you’ll need for your tax return. HSA Tax Prep Checklist Check your W-2 for HSA payroll contributions Get your 1099-SA form...
Health savings accounts (HSAs) have become increasingly popular but they often come with misconceptions. To help employees make informed decisions, let’s debunk common HSA myths and shed light on the HSA facts that matter. HSA Fact #1: HSAs are Employee-Owned While employers may choose to contribute to an employees’ HSA, it’s important for employees...
Expanded public transit. The rise and rebound of ridesharing. Increased work-from-home arrangements. The work commute has changed a lot recently, as lawmakers and civic officials grapple with how to effectively support people traveling to and through ever-growing cities. New York City, Washington, D.C., Chicago, Philadelphia and Seattle are among cities that have enacted laws and...
What are pre-tax savings and post-tax savings? Understanding taxes relating to health savings accounts (HSAs), flexible spending accounts (FSAs) and other benefits plans can be time-consuming and difficult to explain. Pre-tax savings are tied directly to FICA taxes. You may be wondering what FICA is and how does pre-tax savings work for HSAs and FSAs?...
In 2023, mental health became a top priority for employees and employers. According to a SHRM study, 41% of U.S. employees said they would likely or would very likely leave their current job if they were offered a new position with significantly improved mental health benefits. While many companies offer employee assistance programs (EAPs), it’s...
Welcome to 2024! As we get ready for another year of sharing the latest benefits trends and practical tips to enhance you and your employees’ benefits experience, let’s look back at our most popular blog posts from 2023. Get the Best Results from Your Benefit Budget Conversations Benefits are critical for attracting and retaining...
As we age, the importance of maintaining safe mobility within our home becomes critical. It is crucial to understand how to save money on common at-home expenses with health savings accounts (HSA) and flexible spending accounts (FSA). From home modifications to adaptive equipment, creating an environment that not only nurtures a person’s well-being but also...
Employees – and You – Benefit from a Benefits Debit Card
Employees – and You – Benefit from a Benefits Debit Card
Helping your employees save doesn’t just benefit them – it helps employers like you, too. Providing employee benefits that are easy to both understand and use will encourage them to participate. Advantage Administrators recommends accomplishing this by providing employees with a benefits debit card.
Automated Spending
Using a benefits debit card has a lot of perks, one being ease of access. Americans use debit cards more frequently than cash when making a purchase, oftentimes because of its convenience. A benefits debit card allows employees to access their funds from all of their employee benefits in one place. Since using a debit card is already standard procedure for many employees, they will be more inclined to take part in the program.
Additionally, using a benefits debit card is time-saving. Employees who use their benefits debit card at an Inventory Information Approval System (IIAS) merchant can bypass the need to substantiate Flexible Spending Account (FSA) or Health Reimbursement Arrangement (HRA) claims. These programs make for a better experience, which could help up program participation and help you save on FICA taxes.
Keeping it Simple
To prove the eligibility of expenses, the IRS requires FSA and HRA claims to be substantiated. If the IRS finds evidence that the purchases were not compliant, the plans could be disqualified and contributions may become taxable.
Some benefits debit cards automatically substantiate recurring expenses and copays. If the card identifies similar conditions as a previously substantiated purchase, such as the same amount and location, the purchase is approved automatically. The card also recognizes recurring copays and allows employees to approve them without additional documentation.
As an employer, a benefits debit card also reduces the number of questions you have to field regarding employee benefits. With timely reimbursement and less time filing claims or uploading documents, Advantage Administrators knows that you and your employees will be able to spend more time on things that matter.