Cafeteria Plans - Flexible Spending Accounts & Dependent Care Accounts
Flexible Spending Accounts (FSA) and Dependent Care Accounts (DCAP) are outstanding additions to your benefits offering that employees genuinely appreciate at little to no cost.
FSA plans help employees save on average 20%+ on qualified medical, dental, vision, chiropractic, and orthodontia services, to name a few, by simply allowing them to set aside money on a pre-tax basis. With legislative changes, participants are no longer subject to the old "use it or lose it" rules. Now, employers can allow employees to roll over up to $500 of unused FSA contributions. With the confidence employees have with the rollover feature, FSA's have become an even more valuable benefit to your employees.
DCAP plans are great for those employees that have dependents under the age of 13 or parents that rely on the employees for daily care. Employees can contribute up to $5,000 per plan year to help pay for daycare expenses pre-tax.
In addition to offering valuable benefits to your employees as an employer offering FSA and DCAP plans, you save money on every dollar your employees contribute. You save on both Federal Insurance Contributions Act (FICA) and Worker Compensation premiums. One of our clients with 72 participants generated $8,424 in FICA and WC savings in one year, their net gain after administrative fees.
