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A well-implemented Section 125 Plan allows you turn tax savings into a valued benefit for your employees, while also gaining additional tax savings for your company. These plans are gaining a populatiry as the means to help offset the ever increasing share of employees' out-of-pocket medical costs.
Our comprehensive Section 125 service package is designed to ensure your plan's compliance with IRS regulations and to improve employee participation through education, support and user-friendly tools.
Administration Service
GBS Administrators specializes in helping employers implement and administer compliant Section 125 plans that enhance benefits programs instead of complicating them. That means that we lift the administration burden - along with liability and privacy concerns - off your shoulders. What's more, we use powerful tools to maximize employee participation and turn your Section 125 plan into a truly desirable benefit. Our administration service contains:
- Plan design and implementation, including the completion of a custom Plan Document, employee enrollment meetings and myFSA Online setup
- Assurance of plan compliance, including non-discrimination testing performed at the beginning and throughout the year
- Comprehensive enrollment materials for employees, including plan description, calculation worksheets, election and claim forms
- Flexible Spending Account administration
- Debit card option for Health Care Reimbursement Accounts
- Per-pay-period and monthly reporting
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Flex Convenience® Debit Card
Time-consuming paperwork is a major reason why employees can find Flexible Spending Accounts (FSAs) difficult to handle. Now you can simplify your employees’ lives with our user-friendly tools proven to increase plan participation and grow employee contributions.
The Flex Convenience® debit card system automates the process of paying for eligible health FSA expenses. Employees can use the card only at qualified locations, wherever MasterCard® is accepted, such as physicians’ offices and pharmacies. Approved expenses are automatically deducted from their FSA.
This sophisticated system allows us to define claim validation criteria to suit each employer’s plan. For example, the charge amount must be equal to the amount of the co-pay on the employer’s plan in order for the claim to be automatically validated. If the criteria are not met, we will request the employee to submit the supporting receipt.
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Introducing a Flex Convenience® debit card often leads to a higher volume of total FSA contributions, which in turn increases the amount of employer's tax savings. The higher volumes are due to increased participation, as well as larger annual contributions made by employees. These are the typical metrics for an average employer's FSA the year after the introduction of the card:
| Average percentage of employees participating in health FSA |
25% |
| Average increase in per-employee annual contribution |
28% |
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| For more information, request a free copy of our Debit Card Handbook.
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MyFSA Online
To help employees keep track of their flexible spending, their current account balance is always available online through our myFSA feature. Here they can also download claim forms and find answers to frequently asked questions. MyFSA Login
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