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How to reduce taxes with a Health FSA for employees — Video

Employers can do a big favor for their employees while further reducing overall payroll tax liability with a Section 125 Health Flexible Spending Arrangement (FSA). The Health FSA for employees earns an employer a lot of good will and usually pays for itself (and beyond) with employer tax savings.

(4:34 min.)

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The Health FSA for employees is one part of a comprehensive Cafeteria Plan under Section 125 of the IRS Code.

Section 125 allows employees to save up to 40% in combined income and FICA taxes on group health premiums, supplemental benefit premiums, and contributions set aside for out-of-pocket medical expense reimbursement plans like the Health FSA for employees.

Employers save, too, by eliminating their own payroll taxes on employee dollars paid into the plan on a pre-tax basis.

Health FSA for employees

CoreFSA plan document package — just $129.00*

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Blog posts on how to reduce taxes with a Health FSA for employees:

Health Flex Spending Account: HSA, FSA, HRA | What’s the difference?

2019 inflation-adjusted benefit limits for FSA, HSA, QSE-HRA, more

Limited-purpose FSA to preserve HSA value

FSAs are here to stay: Business and Treasury face off (Part of the Section 125 Plan’s 40th birthday series)

Why Every Employer Should Have a Section 129 DCAP FSA Plan

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Click to download: Core FSA plan document package for Section 125 Cafeteria Plan Health FSA -- with forms Core Section 125 Premium Only Plan Document Brochure $99 Wrap SPD Plan Document required for all group health plans.

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