Flexible Spending Accounts (FSAs) and FSA Administration

Flexible Spending Accounts (FSAs) have become increasingly popular vehicles for reducing ever-rising health care and dependent care costs. The burgeoning popularity of FSAs is mainly attributed to their widely acknowledged win-win nature. That is, both employers and employees have much to gain from offering and utilizing FSAs.

Employer Benefits
For employers, the decision to offer employees flexible spending account options is made easy:

• Employers owe no payroll taxes on employee FSA contributions.
• Employer tax savings usually pays for the entire cost of FSA administration.

Employee Benefits
There are also real, tangible benefits for employees:

• Employee FSA contributions are made with pre-tax dollars, saving them an average of 30 percent on eligible expenses every year.
• FSAs provide employees with an additional option for minimizing health care costs.

Health Care Flexible Spending Account Option
One FSA option offered by Ceridian is called a Health Care FSA. With Health Care FSAs, employees can use their pre-tax contributions for:

• Insurance deductibles
• Co-payments
• Eye glasses and contact lenses
  Orthodontia and other dental-related expenses

Additionally, employee Health Care FSA dollars can be use toward hundreds of other health care-related expenses not covered by their insurance plans.

Limited Purpose Flexible Spending Account
Ceridian now offers a Limited Purpose FSA solution that is ideal for small employers. A Limited Purpose FSA is designed to complement a Health Savings Account (HSA), and limits eligible expenses to Dental or Vision related services only. With Limited Purpose FSAs, employees can use their pre-tax contributions for:

• Eye glasses and contact lenses
• Orthodontia and other dental-related expenses

Dependent Care Flexible Spending Account Option
With Ceridian's Dependent Care FSA, employees use their pre-tax contributions for:

• Work-related child day care expenses
• Work-related dependent adult day care expenses

Choosing the Right FSA Administrator
Although an employer's ultimate decision of whether or not to offer FSAs is rather painless, choosing an FSA administrator can seem a little more daunting. That's where Ceridian comes in.

As a leader in FSA administration, we understand the importance of implementing and running successful FSA programs. With Ceridian as your FSA administrator, you will enjoy a seamless integration of FSA options into their existing health plan offering.

Going Above and Beyond
We are committed to providing competent, quality customer service to thousands of FSA Services clients nationwide. With rapid claims processing and careful attention to your needs, we aspire to produce the highest level of service in the industry.

Ceridian also provides value-added tools and resources to help employers and employees get the most out of their FSAs. Our FSA calculator allows employees to accurately estimate their yearly FSA contributions. Additionally, as a thought leader in the industry, we frequently publish articles, and feature Web forums on popular FSA topics.