How to setup a Flexible Spending Account in your organization
Flexible Spending Accounts are one of the few benefit plans that
can be a win-win situation for both employers and
employees - more take home pay for employees and reduced
payroll taxes for employers.
PowerFlex Software
PowerFlex TPA
PowerFlex Software lets you provide flexible spending
accounts to your employees with no monthly fees, no
Third Party Administration setup fees and, in most cases,
no annual paperwork. Our clients typically see a 100%
return on investment in under 6 months!
Not sure you want to self-administer your flexible spending
account? Then leave the work to us with PowerFlex TPA (Third Party
Administration) Services. Our expert staff will handle
all aspects of employee claims and reimbursements for you!
Either way we've got your FSA administration needs covered!
To Setup a Flexible Spending Account You Need:
Legal Documents
Before an employer can take advantage of benefit tax
deductions for insurance premiums, out-of-pocket medical
expenses, dependent/adult daycare, and parking and transit
expenses, the IRS and Department of Labor require
employers to establish a formal Plan Document. To be
in compliance with this requirement, you will need
both a Plan Document and a Summary Plan Description.
A Plan Document
is the legal document that defines the
employer, eligibility requirements, all the
reimbursement procedures / process, etc.
A Summary Plan Description (SPD) is
the legal document that summarizes the Plan Document in easily
understood terms. This is provided to participants.
PowerFlex can
provide custom prepared Section 125 compliant
plan documents at a fraction of the cost of most
other providers.
Employees elect to participate in the FSA plan by defining how much
they wish to have withheld from their salary.
During the plan year employees submit claims for qualifying
expenses which are tracked and reimbursed to the
employee.
PowerFlex Software Keeping track of a
flexible spending account plan's records manually
could become extremely time consuming and
cumbersome. PowerFlex Software will allow you to
immediately take advantage of the tax savings
provided by a cafeteria plan and will easily keep
track of each individual employee's contributions,
withdrawals, and account balances. It will also
print qualified expense reimbursement checks. Let
PowerFlex Software automatically calculate and take
advantage of the dependent care reimbursement
limitation option. Password protection assures your
sensitive plan data is kept safe.
PowerFlex TPA
Designed for organizations with limited internal
resources to manage their FSA plans, PowerFlex TPA
(Third Party Administrator) offers companies large and
small an affordable, easy way to take advantage of Flexible
Spending Account (FSA) plans. From plan setup to administration
and reporting, PowerFlex TPA is the best choice for administering
your company's Flexible Spending Account plan.
