Giving employees the option to use pre-tax dollars through an employer’s custom benefits plan to purchase health care products is a tax savings benefit to all in the business. Sometimes it can be unclear which health care products are eligible under Code 213(d) that allow employees to use their pre-tax Health Savings Account (HSA) and Flexible Spending Account (FSA) dollars. But that ends today.
BASE® is providing a new way to shop online for eligible medical expenses with the help of Health Shopper. This website is curated with nothing but unique and eligible health care products, and will help consumers choose which products would fit them best. Only eligible health care products are found on Health Shopper’s website, which makes it even easier for consumers to know the health care products they are purchasing are considered eligible expenses under the IRS Code.
Consumers can search for products online through the Health Shopper website, and when they have found what they need, will be guided to Amazon to purchase their products. Health Shopper shows how simple it is to learn about, shop for, choose, and purchase eligible out-of-pocket health care expenses online.
Health Shopper is just another great example of how BASE® is striving to deliver a better consumer experience, and making it even easier to utilize HRAs, FSAs, and HSAs. No more guessing, no more uncertainty. Instead, Health Shopper allows consumers to learn about and choose the unique products they need. Click here to start shopping!
The 4th of July celebration may be over, but employers and employees across the country are enjoying their FREEDOM with the BASE® 125 Cafeteria Plan has to offer. Employers can choose which pre-tax benefit options to provide and the employees can customize to what works for them. Each plan helps to expand the business’ benefits package and both the employer and employees find more ways to maximize their savings and tax benefits. When employees elect pre-tax contributions, it also helps to reduce the employer’s share of FICA/FUTA taxes; employees will see an increase in take-home pay.
A Flexible Spending Account (FSA) is a plan established by the employer that allows employees to set aside money, on a pre-tax basis, to pay for qualifying out-of-pocket medical expenses. FSA elections can only happen once a year unless a qualifying event takes place; such as marriage, divorce, or the birth of a child. The maximum contribution limit on this benefit is $2,700.
This plan gives the employee the FREEDOM all year to pay for qualifying expenses such as:
- Flu shots
- Hearing aids & batteries
- Physical therapy
- Rx prescriptions
- And MUCH MORE
A Dependent Care Assistance Program (DCAP) is a plan established by the employer that allows employees to set aside money, on a pre-tax basis, to pay for qualifying dependent care expenses. No matter the type of care, this plan provides some additional financial assistance to help take care of the family. The maximum contribution limit on this benefit is $5,000.
This plan gives the employee the FREEDOM all year to pay for daycare, before/after school programs, and elder care for the following types of individuals:
- Children under 13 claimed on participant’s tax return as a dependent
- A spouse who is incapable of self-care
- A dependent, over 13, sibling, or in-law, incapable of self-care that lives with the participant and is claimed on the tax return
- Care for a disabled spouse or dependent outside of home, but lives with participant at least 8 hours a day
A Limited Purpose Flexible Spending Account (Limited Purpose FSA) is a plan established by the employer that allows employees to set aside money, on a pre-tax basis, to pay for qualifying dental and vision care expenses. This type of plan is available to those enrolled in a High Deductible Health Plan (HDHP) and a Health Savings Account (HSA). When enrolled in a Limited Purpose FSA, employees are open to utilizing HSA funds for savings and investment opportunities.
This plan gives the employee the FREEDOM all year to pay for qualified out-of-pocket dental or vision care expenses. Such as:
- Dental – cleanings, fillings, crowns, or braces
- Vision – contact lenses, eyeglasses, eye exams, and vision correction procedures
A Premium Only Plan (POP) is an optional solution for employers who want to provide employees with an affordable way to pay for their group health plans. This plan allows for employees to pay for a variety of employer-sponsored benefits, such as supplemental insurance premiums on a pre-tax basis. Any size of employer can take advantage of a POP. It is a simple IRS-approved change in an employer’s payroll process that deducts the employee portion of employer-sponsored benefit premiums pre-tax.
Let FREEDOM ring…the FREEDOM to pay for eligible expenses all year with the BASE® 125 Cafeteria Plans. Provide the FREEDOM to pay for eligible out-of-pocket medical, daycare, and insurance premiums with pre-tax dollars while saving valuable tax dollars each year! For more information on the BASE® 125 Cafeteria Plans, call 888-386-9680.