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,...
Spring is in the air! But so are dust and pollen and mold spores (oh, my!), which cause a host of sinus and allergy problems for millions of Americans. But if you have a Health Savings Account (HSA) or a Flexible Spending Account (FSA) from Advantage Administrators, you can use those funds to help you beat the springtime sniffles.
Relieve sinus problems
Whether as a result of the common cold or sinusitis, millions of Americans suffer from sinus pain and pressure, nasal congestion, and drainage every year. But did you know that many nasal sprays, sinus rinses, and other remedies are eligible expenses under your HSA or FSA? That can mean big savings if you use those funds instead of paying out of pocket.
Identify allergy triggers
If allergies are to blame for your troubles and over-the-counter remedies have proven ineffective (or if they’re just not effective enough), it may be worth looking into what your specific triggers might be. Your doctor can perform skin tests and blood tests to determine what’s causing your allergy symptoms in order to provide the most effective course of treatment, and you may be able to use your HSA or FSA funds to cover the cost.
Fix up your first-aid kit
As the weather improves, you may be spending more time outdoors in order to rid yourself of the winter blues. But spending more time outside may increase your risk for scratches, scrapes, and bruises. It’s a good idea to keep a well-stocked first aid kit handy, or to restock your existing kit if you’re running low on supplies. Items like bandages, gauze, and gloves qualify as eligible expenses, meaning you can use your FSA funds to pay for them.
Save your receipts
When you’re stocking up on supplies to help heal your springtime scrapes and sniffles, you’ll want to make sure you keep track of what you’re spending your FSA funds on. Because FSAs are tax-advantaged accounts, the IRS requires proof that the funds are being spent on eligible expenses. The IRS may disqualify FSAs it determines to be either previously or currently non-compliant. And if a plan is disqualified, any contributions that were made to that plan could be considered taxable.
An Explanation of Benefits (EOB) form usually contains the required information, but if you don’t receive one, the information you’ll need to provide includes:
The date the service was received or the purchase was made
A description of the service received or the item purchased
The dollar amount for the service received or the item purchased
The name of the service provider or the name of the store where the item was purchased
When you use your benefits debit card from Advantage Administrators to pay for eligible expenses from merchants with an Inventory Information Approval System (IIAS), you won’t have to submit receipts to verify your purchases—you can just swipe the card and go. Purchases from non-IIAS merchants, however, will still require submission of receipts so your purchases can be verified. Our mobile app makes uploading receipts and filing claims a cinch, and is available for both Apple and Android devices.
If you’ve got questions about what may or may not qualify as an eligible expense, or about how to take advantage of the benefits that come with having a Health Savings Account or a Flexible Spending Account, contact Advantage Administrators today!