If your firm does not already have a Flexible Spending Plan in place, there is still time to set it up for 2014, but a document must be drafted and signed before December 31, 2013 in order to go into effect on January 1, 2014. Contributions to the plan are free from both income tax and Social Security tax. That means the employer will have a lower Social Security tax bill for any participant in the flexible spending plan.
Premiums for health insurance coverage can be paid out of the flexible spending plan, saving every participating employer considerable expense.
Flexible spending plans are used for: premiums on health insurance policies; medical expenses not covered by health insurance policies, such as dental work and eyeglasses, prescription drugs and transportation to medical appointments, and for child or adult home care expenses and after school babysitting expenses.
It’s so easy to set up and a benefit for all. Call us now to set it up!