NEW YORK, Sept. 20, 2018 /PRNewswire/ -- FSA administrators, Clarity Benefit Solutions, offers tips for communicating the benefits of FSA plans to a variety of age groups.
Flexible Spending Accounts (FSAs) permit employees to receive pre-taxed benefits that are withheld from their paychecks to pay for both eligible health care and/or dependent health care expenses. Employers should promote these accounts to their employees no matter how old they are—emphasizing the benefits to each generation.
Baby boomers (people born between 1946 and 1964) are typically highly focused on health benefits as well as financial security. This generation will benefit from hearing that FSAs are pre-taxed benefits, and they only need to contribute a portion of their regular paycheck to pay for their qualified expenses. Let them know that they have access to this account on day one since it is prefunded. A portion of their paycheck will reimburse their employer throughout the year. Another important FSA advantage to this age group is that big expenses can be paid off over time. If an employee uses all his or her FSA funds for the year in one day, he or she is immediately reimbursed, then may pay allocations throughout the year. Incurring a large expense at the beginning of the year lets employees have ample time to pay off that expense
For Gen X employees (those born between 1965 and 1979), their top concern is learning about the value of their benefits—especially life and disability insurance, dental/vision plans, wellness programs, FSAs, and dependent care benefits. Inform Gen X employees that not only are vision and dental care are eligible expenses with an FSA, but so are copayments, prescription medications, and over-the-counter medications.
FSAs can be top-of-mind with Gen Y (workers born between 1980 and 2000). These employees tend to be focused only on their paychecks and not realize the value of other benefits. Relay to this younger generation that every dollar the employee contributes to the FSA will reduce the amount of money he or she pays in income taxes.
About Clarity Benefit Solutions: Clarity Benefit Solutions FSA Company provides technology that makes the health insurance plan selection process fast, easy, and straightforward. For over two decades, we have provided clients with industry-leading technology, compliance, and exceptional customer service. Our offering is designed to save time and lower the costs of managing benefits while also promoting employee self-service and automated ACA compliance.
SOURCE Clarity Benefit Solutions