Agenda Packets - 1988/08/01 - Laserfiche WebLink

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ding Account Plan You could think of the FSA plan as an easy and extremely attractive addition to your existing employee benefit package. The DCA dollar of compensation FSA plan may provide all the ;lexibility and Security wage base ysar benefit enhancement you want or need at this irk fer use In their Flexible time. Or... nts, your company can save In a more bnadiy-based fiexibie cumprnsation in payroll taxes. For example, strategy. the DCA FSA plan can provide a each ronlriu:.e $100.00 per dramatic beginning and an extremely cost- lan, your company could save efficient cornerstone in building toward your (Social Security and other more comprehensive program. ery month: Foremployees... $700 The DCA Flexible Spending Account (FSA) plan gives employees the :means to ccnvert x Flexible Spending Account otherwise taxable compensation into lax -free ar your employees spend on health ^are and dependent day care benefits. Ih care expenses and The plan is voluntary. Employees may care expenses, take-home pay contribute from zero up to a substantial d by forty to pay cents, and maximum dollar amount... depending oa their ,me cascc. For example, ao indiv.;L31 life cycle needs. All contributions )ays 33% in federal income tax, are made to the plan through convenient ome tax and 711 in FICA tax: payroll deductions. oirticipants obtain a arninya Required material reduction in overall federal income 11,00 /n Health Care razes, FICA taxes and state income taxes, and, Day CareExperses a considerable increase in take-home pay. in Wil"I the Plan Row Even if an employee joins an Hh1O or elects f070 it Works other first -dollar health care coverage, he or she undoubtedly will incur additional health care or day care expenses that will not be paid ble Sp_nding Account (FSA) by any of the company's other employee nployers to provide a valuable benefit programs. FSA's allow each emrloyee ile, a. the same time, reducing to set aside pre-tax dollars from every tax expenditeres. It creates a paycheck to pay for a variety of otherwise ;e in attracting and retaining after-tax expenses, some of which are: ployae premiums, deductibles • Premiums —All employee -paid premiums for ce paid with pre-tax FSA company -sponsored health care plans and e way for increased employee fnr certain disability income and life icing and additional, cost- insurance plans. e benefit programs. Overall 7ealth Care —All medical and dental plan m be reduced considerably. I deductible amounts and co -payments; As eyeglasses, orthodontia, hearing aids and other expenses that are not paid for by insuraor plans. • Dependent Day Care —All day care expenses incurred by a single parent or while both spouses are at work ... up to a specified maximum amount (for example. 54,800 per yeas, with a limit of $2,00 per:hild). Employee premiums for company -sponsored insurance plans automatically am paid on a pre-tax basis through the company's payroll system. For other eligible expenses, employees simply pay the bills as they normally would. and then submit records of those expenses to DCF for adjudication and reimbursement from their pre -lax FSA accounts. A Sound Idea... Flexible Spending Accounts (FSA's) have been around in one form nr aaotSer since the late seventies. Also known as salary conversion plans, expense reimbursement plans, or cafe- teria plans, thousands of FSAa Fare been Implemented by large and small companies throughout the country. ...Backed xith the Experience and Expertise of W. DCA has designed and perfected an unfaral- leled low-cost, streamlined, and easy-lo- instill Flexible Spending Account system fur exclusive use by DCA client:. The Full. The DCA FSA system is surprisingly $(rv7fkil� simple ... because your anlyongoing involve- ments are the t ansmittal of a single check F9edle and participant contribution data once each Spenfiing month and the processing of enrollment forms System as new participants become eligible. DCA pro: the complete package of necessary recoriaeceping and communicalitn services. l�