6 Reasons Employees Will Love an FSA/HSA

Valentine’s Day is just around the corner!  For many, it is a day to celebrate the ones you love with cards, flowers, chocolates, and more.  But one of the best ways an employer can celebrate this day is to provide a health benefits package to their employees, because nothing says, “I love my employees” more than investing in them!

One of the best ways is with a Flexible Spending Account (FSA) or Health Savings Account (HSA)!

Why?  Because the FSA and HSA are both pre-tax accounts that employees can use to pay for their qualified out-of-pocket health care expenses.  Both health benefits are great options to enhance an employer’s benefits package, helping employees save 25-40% in taxes for every dollar they elect. 

The BASE® FSA allows employees to pay for their qualified expenses with all funds elected available on day 1 of the plan year. 

The BASE® HSA allows employees to save and pay for qualified expenses now or in the future with funds growing as they put their money into the account on a pre-tax basis each year. 

Here are 6 reasons employees will love an FSA/HSA:

  1. Reduces taxable income which increases take-home pay. When an employee puts money into their FSA or HSA on a pre-tax basis, it helps to save on federal, state, Social Security, and Medicare taxes. 
  2. Use on a tax-free basis. When employees use the FSA/HSA to pay for qualified out-of-pocket health care expenses, they do not pay taxes on those funds being used. 
  3. Share the love with family. One of the best parts about the FSA/HSA is that employees can use those funds on their loved ones (as long as they are qualified dependents) and their health care needs. 
  4. Lots of qualified expenses. The IRS has approved hundreds of health care items and services as FSA/HSA-eligible.  Employees can spend their funds on eligible over-the-counter medications, prescriptions, copays, deductibles, dental visits, eye exams, and so much more. 
  5. Potential future use. With the HSA, employees continue to rollover funds each year, no matter what.  The money stays in the account and continues to grow.  With the FSA, depending on plan design, there might be a “grace period,” “carryover,” or “use-it-or-lose-it.”
  6. Peace of mind. Employees will have peace of mind knowing that they are putting away funds to pay for any unexpected doctor visit, surgery, or procedure that they weren’t planning on for the year.

There are so many more reasons for employees to love pre-tax health benefits, but employers benefit too.  The bottom line is that the tax advantages for both the employee and employer are hard not to love.  Contact BASE® at 888.386.9680 or visit www.BASEonline.com.

New Year, New Me…Using Health Benefits to Support New Year’s Resolutions

10, 9, 8, 7, 6, 5, 4, 3, 2, 1… HAPPY NEW YEAR!  As the ball dropped and another New Year dawned, many people were ready to make a fresh start.  New Year, New Me, and most focus on improving their health and wealth. 

A recent UnitedHealthcare survey found that 55% of Americans made a health-related resolution for 2024.  Losing weight, exercising more, and improving mental health were the topmost common New Year pledges.  The second most-popular resolution was to build wealth.

If health and wealth is a priority this year, there are ways to utilize the health benefits available to help employees work towards their New Year’s resolutions.  Here are a few BASE® services that can help!

If the resolution is to “get healthy…” this resolution can include a range of healthy behaviors and there are a few health benefits that could be offered to encourage physical, mental, and emotional well-being.

If the resolution is to “save more, spend less…” this resolution can include a range of behaviors and there are a few health benefits that could be offered to stick to a health budget, build emergency savings to pay for health care now or in the future, and make the most out of every health care dollar available. 

Employers can play a part in helping employees achieve their resolutions by sponsoring benefit options, such as:

  • Health Reimbursement Arrangements & Health Savings Accounts: highlighting these plans and how they can cover the cost of eligible expenses can help employees take an active role in getting care to get healthier, while also providing savings to help meet financial goals.    
  • Lifestyle Spending Account: this post-tax spending account can help employees pay for eligible expenses that promote physical, financial, and emotional well-being. 
  • 125 Cafeteria Plans: whether an employer offers one, or all four, of these health plans, employees have access to quality benefits and allow them to pay for eligible expenses and save money by putting money into these accounts on a pre-tax basis. 

A company’s benefits may not be at the top of every employee’s mind when they set their New Year’s resolutions, but employees want tools and resources to achieve their goals.  As they take the time to assess the future with the beginning of a new year, it is best for employers to be armed with the benefits to meet the needs to recruit and retain top talent that aspires to improve their health and wealth.

Kick off the New Year by learning about additional benefits that can assist in meeting the needs of your employees in 2024 by contacting BASE® at 888.386.9680 or visit www.BASEonline.com.