FSA Administration

FSA Administration

Flexible benefit plans, also known as cafeteria plans or Section 125 plans, offer employers payroll tax savings.  They allow employees to set aside money pre-tax to pay for health insurance and various medical and dependent care expenses.

Pre-tax flexible benefit plan options include:

Premium-Only Plans

Premium only plans, also known as POP, reduce tax liabilities for both the employee and employer. The plan allows employees to pay for medical, dental and vision insurance premiums on a pre-tax basis. Employers can benefit from reductions in Social Security and Medicare taxes and employees can save on federal, state and city income taxes.

Flexible Spending Accounts (FSA)

A FSA allows employees to set aside a designated amount from each paycheck pre-taxed. Funds set aside are used to reimburse employee’s medical, dependent care and other qualified expenses. 

One of the easiest ways to enhance your employee benefit plan is by offering a FSA. The unique features of a FSA reduce employee taxes as well as employer tax liability. Within a FSA, there are four options employers can offer participants: 

  1.  Medical Reimbursement Accounts
  2.  Dependent Care Reimbursement Accounts
  3.  Adoption Assistance Accounts
  4.  Premium Reimbursement Accounts

Through Bukaty Companies online system, FSA/HRA participants have the ability to:

  • Obtain FSA account balances online 
  • Obtain HRA account balances online
  • Review claims status online
  • File a claim online

Debit Card Option

The debit card is one way for FSA/HRA participants to pay for eligible medical expenses. Participants can use the debit card at qualified merchants (as determined by the employer’s plan document) to pay for:
 
  • Office visit co-pays
  • Deductible-related expenses
  • Prescriptions
  • Eligible over-the-counter items
     
The card can be used at qualified locations nationwide, wherever MasterCard® is accepted. The debit card eliminates the hassle of paying for qualified medical expenses out-of-pocket.