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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.)

Click here to watch on our YouTube channel.


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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*Electronic version order. Deluxe Binder version upgrade available for $179. See order form for details.


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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Brochures

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.

Employer Guide

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Mission Statement

Core Documents is committed to helping our Clients and their employees reduce income tax liability with compliant Plan Documents and Summary Plan Descriptions that allow them to deduct insurance premium, out-of-pocket medical expenses, dependent care expenses, and commuter and parking expenses before payroll taxes are calculated.