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...
Did you know that, when employees were asked on a scale of 1 to 10 how confident they are in their understanding of their benefits, 34% chose 7 or less. Only 25% responded with a 10. That was just one of the findings from a survey of benefits participants WEX launched in May 2023.
Often, employees feel confused about their benefits plans options, especially if their employer is using “complicated HR jargon” in their benefits messaging. How can your benefits messaging cater to your employees through benefits education? Let’s explore tips on how employers can effectively communicate benefits messaging to employees in a way that’s relatable and easy to understand.
Simplify Messaging
Trying to understand benefit plans and the accompanying “HR jargon” can be complicated and a source of frustration for employees. Employers should make a concerted effort to simplify the language used in communications to ensure employees can easily understand their options and make informed decisions. Rather than using acronyms and technical terms, employers could use simple language and meaningful stories to help employees visualize and understand their benefits.
Increase Communication
One main reason why employees don’t understand their benefits is a lack of communication from their employers. If benefits information is only provided during open enrollment, employees may forget about their benefits package or not fully understand their options. Employers should consider year-round benefits communication to ensure that employees are up-to-date and informed about their benefits.
When asked in WEX’s survey how often they would like to receive tips/resources about their benefits, the most popular answer was monthly (44% of respondents). However, you could create opt-in opportunities for more frequent communications for employees who are interested in that. Employees also told us their preferred methods to receive benefits education are:
Speak Their Language
To effectively communicate, it’s vital to get on your audience’s level and use language that they understand. Unfortunately, a lot of the terms used in the employee benefits space are not commonly used in everyday conversation. When WEX surveyed their benefits participants, another question they asked was about their comprehension level for some of their terms. Based on their responses, a few of the most misunderstood terms are:
When using these terms, you may want to explain what they mean upfront or link to a resource that provides additional explanation for those who need it.
Provide Incentives
There are a variety of strategies employers and HR leaders can use to make the benefits enrollment process more enticing for employees, including:
Increase Convenience
Increased convenience to benefits education can have a significant impact on an employee’s ability to understand their benefits. Provide easily accessible resources like online portals, mobile apps and digital tools to help employees access information about their benefits at any time and in any location.
These resources can help eliminate barriers that may prevent employees from engaging with their benefits, such as time constraints or difficulty navigating complex benefits information. Overall, increased convenience in benefits education leads to better-informed and satisfied employees, which often translates to improved productivity, employee retention, and overall company success.
The information in this blog post is for educational purposes only. It is not investment, legal or tax advice. For legal or tax advice, you should consult your own counsel. To stay up to date on benefits trends and insights, subscribe to our blog.
Flex Plans
Forms
HSA
HRA
Retirement
Health Shopper
FSA Store