Flexible Spending Accounts (FSA)

A Flexible Spending Account is an employee contributed account that allows them to set aside tax-free dollars that can be used throughout the year for qualified healthcare or childcare expenses.  This allows your employees to take home a larger paycheck by reducing their taxable income.

Funds placed into the plan avoid both Federal Income Tax and FICA, creating a tax savings for both you and your employees.

ASi FSA Plans

We offer several different types of Flexible Spending Accounts.  FSAs are also known as flex plans, Cafeteria Plans, or Section 125 plans.  As part of your plan design, you can choose to offer your employee’s an ASi Visa® Card that they would use to pay for their eligible expenses.  Each FSA is subject to the “Use It or Lose It” Rule.  This means that if your employees do not spend their entire elected amount during the year, left over funds will be forfeited back to the plan.  However, there are options you can choose to offer so your employees don’t completely lose their funds. For more information about which FSA plans offer these advantages, click on each FSA option below.

A Healthcare Flexible Spending Account allows participants to pay for eligible medical, dental, vision, and prescription expenses.  The 2020 FSA yearly maximum contribution amount is $2,750 per participant.  The maximum contribution amount is reviewed each year and can be raised due to cost of living considerations.  Employees cannot contribute more than the maximum per year.  To counteract the “Use It or Lose It” Rule with the HFSA you can choose one of the following options:

Rollover

The rollover feature allows participants to rollover up to $550 from one plan year to the next FSA plan year.  Any funds above the $550 limit would be forfeited back to the plan.

Grace Period

This optional feature allows participants an extra 2.5 months at the end of the plan year to incur expenses against their Healthcare FSA.

A Limited Purpose Flexible Spending Account (LPFSA) accompanies a Health Savings Account (HSA).  The LPFSA only covers dental and vision expenses.  Medical and prescription expenses are meant to be paid by the employee’s HSA. The 2020 FSA yearly maximum contribution amount is $2,750 per participant.  The maximum contribution amount is reviewed each year and can be raised due to cost of living considerations.  Employees cannot contribute more than the maximum per year.  To counteract the “Use It or Lose It” Rule with the LPFSA you can choose one of the following options:

Rollover

The rollover feature allows participants to rollover up to $550 from one plan year to the next FSA plan year.  Any funds above the $550 limit would be forfeited back to the plan.

Grace Period

This optional feature allows participants an extra 2.5 months at the end of the plan year to incur expenses against their Limited Purpose FSA.

The Dependent Care Assistance Program allows participants to set aside pre-taxed dollars for eligible childcare or dependent care expenses.  The yearly maximum contribution amount is $2,500 for an individual or $5,000 for married employees.  To counteract the “Use It or Lose It” Rule with the DCAP you can choose to provide a Grace Period.

Grace Period

This optional feature allows participants an extra 2.5 months at the end of the plan year to incur expenses against your DCAP.

The Full Flexible Spending Account includes both a Healthcare FSA and the Dependent Care Assistance Program.  For more information on those plans, please click on the names and the information will drop down.

A POP allows you and your employees to pay insurance premiums with pre-tax dollars. POPs are needed if you want your insurance premiums to have a pre-tax savings benefit. However, they are not needed if you are offering a Healthcare FSA, Limited Purpose FSA, or Dependent Care Assistance Program. POPs allow employees to save on both their FICA and Federal Income Tax charges for their amount spent on insurance premiums that are deducted from their paychecks.  When employees’ gross pay decreases, employers pay less in matching FICA taxes, which results in substantial employer savings.  At ASi, we provide the plan documents you will need for IRS requirements to allow money to be deducted on a tax-free basis for insurance premiums.

How Do the Plans work?

STEP 1

You choose the best FSA option for your employees.

STEP 2

Employees select an annual election amount to set aside into their FSA. This annual election amount will be deducted evenly out of each paycheck.

STEP 3

Employees swipe their ASi Visa® card for qualified expenses or they pay out-of-pocket and file a claim for reimbursement.

*Please note, if you choose not to offer your employee’s the ASi Visa® Card option, this flow chart will change. Please contact our office for more information.

What Expenses Are Eligible?

Healthcare FSAs cover a variety of healthcare expenses including, but not limited to:

  • Deductibles & Co-Pays
  • Prescription Drugs
  • Dental & Orthodontic Services
  • Eyeglass, Contacts & Eye Surgery
  • Chiropractic Services
  • Mental Health Care
  • Smoking Cessation Program
  • Over-the-Counter Medicines
  • Feminine Hygiene Products

For a complete list of eligible services, please visit here.

Limited Purpose FSAs are only eligible for dental and vision related expenses.

DCAP benefits covers your childcare or dependent care expenses incurred while your employees and their spouse are both working.

For a complete list of eligible services, please visit here.

A Full FSA includes both the Healthcare FSA (English | Spanish) and DCAP (English | Spanish).

Employer Features

As our client, we provide you with the best features available in the industry at no additional cost to you or your employees.

  • Cost Savings on payroll tax for every dollar employees contribute to their FSAs
  • Customizable Benefit Plans and Materials
  • Online and Mobile App Account Access
  • Dedicated ASi Teams Who Provide Personalized Customer Service
  • Plan Document and Summary Plan Preparation
  • Non-Discrimination Testing (Link to Compliance section Non-Discrimination Testing)

Participant Features

We realize your employees are your most valuable asset, which is why we offer them great tools and resources to help them manage their benefits.

  • Monthly Savings & Larger Take-Home Pay
  • Online Employee Portal
  • Mobile App
  • Online and Mobile Claim Submission
  • ASi Visa® Card
  • Easy to Understand Benefits Breakdown

How is Enrollment Handled?

We can provide an Excel census template (for onboarding and open enrollments), as well as, enrollment forms for you or your Human Resources department to complete.  We can also help in-person during you open enrollment event if requested.

For those employers who have access to the ASi Employer Portal, you have the ability to enroll participants online.

What Can I Expect from ASi?

  • Personalized Customer Service
  • Assist in Plan Design, Including Plan Design Options and Features
  • Draft Plan Documents, Including the Basic Plan Document, Adoption Agreement, and Summary Plan Description
  • Assist Broker in Plan Presentation
  • Assist in Group Enrollment
  • Marketing Materials for Your Employees
  • Timely Claims Processing
  • Provide Standard Reports Upon Request

Still Have Questions?

Check out our FAQs or contact us!

Want to Know More About this Service?

Contact our Sales team
Request a Quote
Phone: 866-777-1320 or 559-256-1320
Email: salesteam@asibenefits.com