Tax Advantage Programs
Flexible Spending Accounts (FSAs)
These plans can make paying premiums, out-of-pocket medical/dental expenses, childcare, and elder care less costly. Employees can choose to have a predetermined amount of money deducted from each paycheck – before taxes. After the employee incurs an expense, the receipt is submitted for reimbursement. The result is employees pay their out-of-pocket expenses with money that is not subject to taxation.
A 401(k) allows your employees to save for retirement on a pre-tax basis through the convenience of payroll deductions. An employer also can choose to offer this program with or without employer contributions. Companies with as few as two employees can provide a 401(k) savings program. A 401(k) program is 100 percent employee owned for all of the employee contributions. Even the employer contributions become 100 percent employee owned once the employee becomes fully vested.