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Flexible Spending Account (Health)
Benefits & Compensation
Flexible Spending Account (Health)
Exchange ideas about health plans, retirement, work/life benefits, and employee assistance.
Hello,
We run our FSA account in-house and I've had some troubles finding the list of eligible medical expenses.
I was looking on the IRS website but could not find a 2008 502 form (they only have
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Forums » Topic Forums » Benefits & Compensation » Flexible Spending Account (Health)
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Flexible Spending Account (Health)
posted at 11/19/2008 4:00 AM EST
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Posts: 1047
First: 4/11/2002 Last: 9/14/2011 |
So for 30 employees, you would be looking at a typical monthly administrative cost of between $90 and $120. Including the setup, that would put your vendor costs between $1500 and $2000 annually. If the average election amount is $750, that would put the total employee deductions at $22,500. The tax savings for you as an employer on that amount would be a little over $1700. So in essence, the plan could be put in at "no cost".
Yes, I know if you were to continue to administer the plan in house you wouldn't have that $1500 to $2000 in administrative expenses, however, your time could probably be better spent doing something more fruitful within your organization. Then throw in the potential legal liability of administering the plan incorrectly..... As for vendors, it really depends on who your carrier is (some carriers have in house vendors or preferred partners) and where your company is located. There are several national vendors, but local companies seem to fair just as well as long as the customer service is there. |
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