FSA can Benefit the Employer as well as Employee

The BASE® Flexible Spending Account is a good option that could provide extra funds during the expensive holiday months. The FSA is a BASE® product under the 125 Cafeteria Plan that employers can offer to their employees to help reduce the taxation on out-of-pocket medical expenses not covered under insurance plans. It is an easy way for employees to save tax dollars throughout the year by setting aside money from their paycheck on a pre-tax basis into a special account that can be used to pay for certain out-of-pocket medical expenses.

The FSA can work for many different kinds of employers. However, the ideal candidate is a company that has one or more employees who pay for qualifying non-insured medical expenses such as dental, vision, co-pays, deductibles, prescriptions, and chiropractic. Not to mention, a variety of other qualifying eligible expenses such as band aids, sunscreen, contact lenses, etc.

While this product greatly benefits the employee, it helps employers save money as well. When employees choose to participate in the plan it reduces the employers share of FICA and FUTA taxes on the elected amount. Employees have the opportunity to save tax dollars throughout the year on over 4,000 eligible expenses. The higher the plan utilization, the more the employer saves!

Leah L., an FSA client, realized the benefits the FSA provided to her employees. “We originally decided to implement the BASE® 125 plan for the tax savings it provided, and I would say that is the biggest benefit.  Not only do our employees save when funds are transferred from their wages on a pre-tax basis, but our company also sees valuable tax savings. Not everyone is great at saving for a rainy day, but this has helped many of our employees be able to save for medical expenses, both expected and unexpected. This plan is very user friendly for both the employees and employer, and I would definitely recommend taking advantage of the BASE® 125 plan.  The BASE® staff is very easy to work with, and is great at helping out in a very timely and efficient manner.”

One proven way to maximize participation is by simplifying the reimbursement process. BASE® offers a variety of ways to reimburse medical expenses including the swipe of a card or the use of a mobile device with photos of receipts. Colleen, another FSA client, mentions the benefits of the FSA for her company and the opportunity for employees to use a debit card. The debit cards make the process seamless and can increase participation. “Aside from the tax savings for both our firm and our employees, one of the biggest benefits is the debit card. It is extremely convenient to swipe the card at the point of service for covered items and services.”

Contact BASE® today to see how your company or clients can start saving today with the BASE® FSA!

Section 105 HRA – The Time is Now to “Fall” Into Tax Savings!

With summer winding down, it is time for farmers to start preparing for the colder months! Growing up on a farm, I always knew that fall had officially arrived when harvest started. Combines and empty fields were signs that fall had begun and farmers were in the midst of their busiest time of year. During harvest, farmers are putting in long hours and late nights to get all their work done in a short amount of time. While most start preparing months in advance, there always seems to be an inevitable cost that comes up. They may have to hire more help or repair equipment; this time of year can be expensive. Luckily, there are ways for the family farmer to save money with creative benefit and tax planning strategies.

BASE® has creative money saving benefit strategies, like the Section 105 HRA. The average BASE® HRA client saves $4,700 each year. This plan allows small business owners the opportunity to deduct up-to 100% of health care costs, including individual insurance premiums and qualified out-of-pocket medical expenses. Using BASE® products will not only allow farmers to save valuable tax dollars, but they also provide peace of mind when concerning IRS, DOL and ERISA rules and regulations.

BASE® is able to help the family farmer yield more of their hard earned money through tax savings. Many family farms have utilized this benefit option and have seen great results. David and Colleen are one example of a self-employed farming team that has seen success by utilizing a Section 105 HRA.

“As a self-employed farming team, a husband and wife can utilize the employer-employee relationship, with qualified documentation of compensation and reimbursement methods, to create additional tax savings each year with the BASE® HRA,” according to Colleen. “With drastically increased health insurance premiums and health care costs, every dollar saved is important.  That is why taking advantage of this benefit is so important, especially when the BASE® HRA allows us to legitimately deduct our health insurance premiums.”

From the guidance offered the very minute they enrolled in the plan to the necessary documentation, they felt everything was very easy to understand.  The best part is when they receive their BASE® HRA Annual Summary Report at the end of each year to provide to their tax preparer, which makes it possible for them to deduct well over the $4,700 in tax savings clients average each year.

 “We highly recommend the Section 105 BASE® HRA to create a means to save on your taxes each year. If you are a self-employed farmer, business owner, or own a small company, BASE® has many HRA options available for you to inquire about.”

BASE® works with tax advisors and insurance professionals across the nation, making sure they are up to date on the latest changes and advising them on products to fit the needs of their clients. The BASE® HRA is a great option for those looking to go beyond the standard deduction, and just one of the many money saving benefit and tax planning strategies available.

No matter the business type, call BASE® to learn more about Section 105 HRAs and other creative benefit strategies during these autumn months and fall into savings.