Health Savings Accounts (HSAs)
An HSA is a smart tool that can help your employees prepare for future healthcare expenses and manage day-to-day medical costs. Some people use their HSAs to pay healthcare bills as they come in, while others prefer to save for future needs. Because funds in an HSA never expire, your employees have an opportunity to build their balance over time.
Flexible Spending Accounts (FSAs)
An FSA is a great tool to help employees set aside money, pre-tax, for healthcare and dependent expenses, while also allowing the employer to avoid payroll taxes (7.65% for Medicare and Social Security) on employee and employer contributions. Medical and Limited Purpose FSA dollars are available to employees immediately which helps with unexpected medical expenses.
Health Reimbursement Arrangements (HRAs)
An HRA is an employer-funded, tax advantaged health benefit used to reimburse employees for out-of-pocket medical expenses and personal health insurance premiums. Through HRAs, employers reimburse employees directly only after the employees incur approved medical expenses. This feature is especially helpful for businesses that want to retain control over their cash flow.
Commuter Benefits is an employer-provided voluntary benefits program that allows employees to reduce their monthly commuting expenses for transit, vanpooling and work-related parking costs. Employers can offer commuter benefits as pre-tax only or also include post-tax.