Flexible Spending Accounts (FSA) Benefit

Looking for ways to manage your healthcare dollars while providing value-added benefits for your employees?

Look no further than a Flexible Spending Account (FSA) from The Principal.

With an FSA from The Principal, you can enhance your benefits program and provide employees with a money saving alternative - without dramatically increasing your employee benefit costs. In fact, your tax savings on employee contributions (which reduce taxable pay) will likely offset your plan costs.*

How an FSA Works

When you offer an FSA, the plan reimburses participants for certain health care and dependent care expenses with before-tax dollars. Employees choose to set aside a certain amount of their pay in an FSA account. Then, their FSA account reimburses them for qualifying expenses, such as child or elder care cost and medical deductibles and copays.

Both you and your employees benefit. You pay no Social Security tax (FICA) on employee contributions. Plus, employees' taxable income is reduced by the amount they contribute to their FSA. In other words, employees pay no federal, Social Security or (in most states) state taxes on the FSA dollars used to reimburse their qualifying expenses.

Please refer to the following for more information on Flexible Spending Accounts or contact us at 1-877-372-4730