Cafeteria Plans - Flexible Spending Accounts & Dependent Care Accounts
Flexible Spending Accounts (FSA) and Dependent Care Accounts (DCAP) are a great (little to no cost) additions to your benefits offering that employees truly appreciate.
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 pretax basis. And 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 employee have with the roll over feature FSA's have become aneven more valuable benefit to your employees.
DCAP plans are great for those employees that have dependents under the age of 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 also on a pre-tax basis. To see how a DCAP plan compares to the IRS allowed Dependent Care Tax Credit click here.
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. This is due to the fact as you save on both FICA as well as Worker Compensation premiums. One of our clients with 72 participant generated $8,424 in FICA and WC savings in one year, a net gain after administrative fees.