Flexible Spending Accounts (FSAs), commonly known referred to as “Section 125” plans or “Cafeteria Plans”, were developed as part of Internal Revenue Code Section 125 to provide employees with tax relief for their un-reimbursed medical and dependent care costs.
FSAs enable employees to utilize pre-tax dollars and save Federal, FICA and, in most cases, state taxes when paying for eligible expenses not covered by traditional insurance plans.
There are 3 types of FSAs:
- Medical Reimbursement Accounts
- Dependent Day-Care Reimbursement Accounts
- Commuter Reimbursement Accounts
By switching your current FSA account to Paypro you will eliminate any manual inputting of your FSA elections, new hires and terms as well as putting an end to manually reconciling your FSA data with payroll information.
With a Paypro FSA Benefits Solution,
you will achieve:
- Seamless Data Integration – With every payroll processed, you capture new hires, terms and FSA election changes, eliminating input errors, reconciliation issues and slow data transfers.
- Smart Card Technology – Paypro’s Benefits MasterCard with smart card technology ensures that only FSA eligible purchases can be made.
- Savings – Eliminate multiple FSA account charges you currently incur for each account administered on the card. Paypro charges per card, not per FSA account on the card.
- Self-Service – Employees that are enrolled in your FSA program can access their FSA account information 24/7. They can easily print transactions, check their balance and make election changes.