Why implement a Flex Plan (Flexible Spending Accounts)?
While usually considered a low cost benefit, not every employer should implement a Flex Plan. Design considerations must be given to the potential costs and possible benefits. Meanwhile employers save on the match for FICA, Medicare and on FUTA taxes (saving between 1.45% to 8%). The Unreimbursed Healthcare account can be used to supplement group health coverage and can be used as a less costly alternative for dental and vision care. Meanwhile, employees benefit from using pre-tax payroll deductions will lower their payroll taxes by between 15% to 40% for moneys they will be spending anyway thus getting valuable tax deductions not otherwise available.
