Employee Benefits updates
Flexible Spending Accounts     
       May 11. 2016
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Dear 
:
 
Many of our clients reached out to us after reading our last newsletter on Flexible Spending Accounts (FSA).  So, we are reviewing once again, along with sharing recent, revised pricing from our Preferred Vendor.  The rates below are for the complete administration of your FSA for 12 months and include the debit cards: 
  • 1-9 ees      = $     750 
  • 10-19 ees  = $  1,050
  • 20-49 ees  = $  1,350
  • 50-99 ees  = $  1,750
  • 100 +           negotiated 

 

**  There is an additional charge the first year of $300 for the plan documentation 

 

As employers have shifted to plans with higher and higher deductibles and co-payments, the need for an FSA has increased dramatically.   Please note that pricing for small groups with less than 100 employees is a flat amount rather than a per participant charge.

 

If you have any questions please send us an e-mail.   Please feel free to forward this newsletter to anyone you know who owns a business.  

 

Also please check out the discount coupon below for free Epi Pens!

 

   

 
Sincerely,


Employer FSA savings for a small employee group

 
Whether you are an employer with 10 employees or 100 employees, the FSA is an option you need to take a closer look at.  Check out a quick calculation below for a group with just 10 employees and 6 participating in the FSA plan:
 
  •  2 employees defer $20 per week
  •  2 employees defer $30 per week
  •  2 employees defer $40 per week

The total weekly would be $180 per week or $9,360 per year. Since these monies are free of all taxes including FICA, the employer in this example would save $716 (7.65% times 9,360).  The employer savings is just shy of covering the entire cost ($750).     

 

Please note all employees are eligible for the FSA, not just employees that participate in the health plan and you can add a daycare component to the FSA.   Our point here is that minimal participation can almost cover the entire cost of the employee benefit with the FICA savings.   

 

Please note, there is a limitation for Sub S shareholders - They may not participate in the plan.

 

 

In most cases the implementation of the FSA will create a savings for the employer by lowering their FICA obligation more then the cost to administer the plan.

 


$500 roll-over and the FSA Store

Besides the cost the install to administer an FSA plan, the other major stumbing block was the employees were afraid of "use it or lose it".    

First the IRS now allows you to roll-over $500.  Click on picture for video:



Second, what if you have more then $500 and you don't want to lose your monies?  Go to the FSA store (video above) to learn more.  
 
 
 
FSA limit is 2,550 for 2016
 
The maximum contribution employees can make to their flexible spending accounts in 2016, will, as expected, remain unchanged from 2015 limit of $2,550. Prior to the implementation of the Affordable Care Act, typically employers allowed employees to contribute between $3,000 and $5,000. 

The Affordable Care Act, however, had a provision that set a $2,500 annual limit on FSA contributions effective in 2013.   Another provision specified that starting in 2014, the new limit would increase to match the rise in the consumer price index at the close of a 12-month period ending on Aug. 31, with the increase rounded down to the nearest $50.
 
 
 
 
 

 

 


Another Discount Savings Card for our clients!
 
Our last newsletter featured a Discount Coupon for Crestor, the popular cholesterol med.  Another one of our clients stepped forward and shared a coupon she was using for EpiPen and EpiPen Jr.
Just go to https://www.epipen.com/copay-offer to get your savings!
Please feel free to share any other resources you may find so we all can benefit.
    
 
 
Big Y Acquires Park Ave. Pharmacy in Worcester
 
 
For our local clients in the Worcester Area you may find the recent article in the Worcester Business Journal of  interest.   More mergers in the pharmacy industry as Big Y takes a step into expanding its prescription and wellness offerings.  Check out the article here!
 

Client Questions this month

We have less then 10 employees do we have to offer COBRA? 
 
Yes you do - Absolutely!!!
 
What benefit is the most over-looked benefit in the group benefits? 
 
Group Life and Short-term Disability insurance! 
Many companies have Group Health Insurance and Group Dental Insurance.  After over 25 years in the insurance industry we see more of a benefit from disability than dental.  You can usually delay going to the dentist, or work out a payment plan for services, but if you cannot work, your bills do not stop.
 
 
Dental works well when an employer pays a portion, but you can add a disability plan 100% paid for by employees if you like.
On the life insurance side, people don't seem to buy life insurance on their own anymore.  Sometimes group insurance is the only vehicle employees have.
Group life is especially important for those employees that have medical issues  and may not be able to purchase on the outside!  
Tom Brady mattress commercial
  


  Advantage Benefits Group       
78 Pleasant St Worcester MA 01609
     800-426-2413 (Bill)                508-798-0887 (Vanessa)
 508 4-14-8305  (Bill cell)          508-494-8303 (Vanessa cell)
[email protected]     [email protected]
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