Let Aflac help make tax savings easy and give your employees the savings they deserve through Section 125 Cafeteria Plans and put all our services at your fingertips.
Aflac helps companies administer premium-only plans and Flexible Spending Accounts (FSAs) provided by WageWorks®, a preferred partner of Aflac.
Increase Value Without Increasing Cost
With Aflac cafeteria plans, you can reduce your employees’ taxable income, thereby reducing your share of FICA and FUTA taxes. This could mean a savings for you and your employees. The administration of flexible spending account plans doesn’t have to be complicated. WageWorks can work with you to implement and assist with administration of a Flexible Spending Account plan at minimal cost.
Helping Employees Save Money is Simple
- Employees sign up for the Flexible Spending Account plan and estimate the amount of anticipated out-of-pocket medical or dependent care expenses for the year.
- Then, they have the corresponding amount deducted in equal installments from each paycheck.
- As employees incur medical or dependent care services, they submit paperwork (or use their takecare® Card, if eligible) and get reimbursed with their own tax-free dollars.
The Bottom Line
Not only do you enhance your employee benefit plan by making Aflac insurance policies available to your employees on a pre-tax basis, but you actually save money too. Extend your offering and savings with Unreimbursed Medical (URM) and Dependent Day Care (DDC) FSAs.
takecare® Card
Convenience and ease of use are essential to attaining high usage rates with your flexible spending account plan. The takecare® Card is a fast and easy way for participating employees to access Unreimbursed Medical (URM) funds at the point of purchase. It looks and works like a credit card, eliminating the need for your employees to use out-of-pocket dollars to pay for eligible medical, dental and prescription expenses. Your company benefits by reducing the administrative costs associated with managing a paper process and your employees benefit by accessing their URM funds directly. There is no need to wait for claims to be processed and funds to be reimbursed.
Employers offering Cafeteria Plans can amend their plan documents to reflect recent changes enacted under the Patient Protection and Affordable Care Act. The documents below are sample amendments covering transition and health Flexible Spending Account (FSA) carryover rule changes.
Employers can amend Section 125 cafeteria plans to provide a carryover of up to $500 of unused health FSA amounts into the next cafeteria plan year (immediately following the previous plan year only). The carryover can be used to pay or reimburse for health FSA medical expenses incurred during the entire plan year in which it is carried over. The carryover does not count against the annual $2,550 (indexed) salary reduction for the new year.
Plans that adopt the carryover provision are not permitted to provide a grace period with respect to health FSAs. For plan years beginning in 2013, the amendment can be adopted at any time on or before the last day of the plan year beginning in 2014. Plan participants must also be informed of the carryover provision. See IRS Notice 2013-71 for more information.
- Carryover rule amendment option A: Includes carryover language for use with plans that do not currently have a grace period.
- Carryover rule amendment option B: Includes carryover language for use with plans that need to eliminate an existing grace period to provide for the $500 carryover provision.
Contact me for your 15 minute consultation and see if these services will heklp you and your business WIN-WIN