Health Care Spending Account
This account allows your employees to plan ahead and set aside tax free dollars to pay for any unreimbursed health care expenses, as defined by the IRS. When your employees participate in this spending account, they should conservatively pre determine what their health care expenses will be during the coming year. Your employees will be reimbursed with tax free dollars from their account after they submit an eligible reimbursement form, accompanied by a paid receipt of services. Reimbursement checks are issued twice a month.
Dependent Care Spending Account
This account allows your employees to pay for child or elder care expenses with tax free dollars. These expenses must be incurred while they are working or a full time student, and must be for the care of a “legal dependent” who resides with them over eight hours a day. Your employees will be reimbursed from their account by submitting a claim form along with a receipt or cancelled check. Your employees cannot receive more than your current balance at any time.
If they are married or single and file taxes on an individual basis, they may contribute up to $2,500 a year. If they file taxes jointly, they may contribute up to $5,000 a year. Eligible expenses include pre school charges, before and after school care, in and out of home care for children or the elderly.
Premium Only Plans
With this plan, you would determine how much money is deducted pre tax from an exployee’s salary to pay for the employees portion of the company’s health benefits.
Premium Reimbursement Plans
The employee would elect to have part of the salary deducted in a pre tax manner. Then the employee can claim this money with receipts or premiums for qualifed private medical insurance plans. These premiums must be paid for through the employee, and must be the sole health insurance for the individual or a qualifying dependent.
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