Setting up flexible spending accounts is another employee benefit that you can offer to keep your staff in your favor and attract the best hires in the future.
An FSA account is a consumer-directed spending account where employees can deposit money that they can later use to pay for out-of-pocket medical, dental, and vision expenses not covered by health care insurance.
Employees benefit by saving some of their pre-tax dollars to go to their expected health care expenses, while also providing you payroll and FICA tax savings.
If you are considering setting up an FSA program for your staff, below are basic best practices to help you build a successful benefits program.
Team up with the right FSA administrator.
FSA administration requires that you keep up with the latest developments in health care legislation and establish a robust communication plan with your staff. The best way to do this without adding to your workload is to partner with a third-party FSA administrator who can take care of the technicalities of offering this benefit.
Use an easy-to-use, accessible platform.
Your FSA administrator should be able to provide your employees with easy access to a platform where they can view their accounts at all times. If you also offer other benefits, such as HSAs and HRAs, the administrator should be able to integrate all these accounts into a single-access platform.
Prioritize your employees’ privacy.
The security of your staff’s health and medical information should be of utmost importance. At the very least, your administrator should be compliant with all HIPAA transaction and security standards and should keep all data encrypted in storage and during transmission.
Keep communication lines open.
The more you focus on communicating with your staff, the more successful your FSA program will be. Your administrator should be able to provide comprehensive communication before and after enrollment with your employees to help them understand how to make the most of their FSAs.
Setting up a new benefits program always takes some time and effort. However, by choosing your FSA administrator wisely, you can successfully implement an FSA benefits program.