Flexible Spending Accounts

Helping Your Employees Afford Healthcare Expenses:

Finally the insurance world has found a way for the federal government to help your employees afford high health care costs. London’s flexible spending accounts (FSA) are tools to help your employees pay for healthcare expenses while you take advantage of tax breaks.

According to the IRS, employees fund their FSA with pre-taxed dollars that can be used for qualified healthcare purchases, such as, deductibles, copays, eyeglasses, Tylenol, dependent care, etc. The account is 100% funded by the employee on a pre-tax basis. Any unused funds at the end of the year do not rollover; employees must use their FSA dollars within fifteen months from their effective date.

FSAs are also beneficial for the employer. Since your employees fund their FSA from their before-taxed paycheck, you pay less in payroll taxes. Please see the chart below for an example:

Features of London’s FSA:
• Debit card capabilities
• Group and personal employee communication
• Detailed and instant payment reports
• Access to online account activity
• Convenient banking and funds transfer
• Enrollment materials
• Personal customer care

London’s FSA options:
• Health
• Dependent Care
• Transportation