A Component of Tucker Administrators’ Employee Benefit Risk Management Program
Tucker Administrators provides administrative services for Flexible Spending Accounts, (FSAs) that allow employees pay for unreimbursed medical expenses and work-related dependent care on a pre-tax basis.
Generally, these eligible expenses include hospital, surgical and other unreimbursed medical expenses incurred for care of the employee, his or her spouse and dependent(s). For example, a flexible compensation plan might be used to reimburse expenses applied to a deductible and co-insurance amounts. Expenses for annual physicals and preventive care, as well as dental, vision, and hearing. Work-related dependent care expenses are also eligible.
Through an employee-funded flexible compensation plan, both the employer and employee stand to receive substantial payroll tax relief. Employer tax savings can offset a plan’s modest administrative costs, and these plans can serve as strong recruiting and retention tools for the most talented employees.
Here's how it works:
It still remains one of the most innovative ideas in employee benefits today.
Pre-Paid Benefits (Debit) Card
We have found that employers and employees alike are more likely to participate in an FSA if the plan administration is easy to understand and streamlined. A component of that is providing a pre-paid (debit) card for reimbursement of participant expenses. The card eliminates the need for employees to pay cash for eligible services and wait for reimbursement for most purchases. However, IRS regulations require that FSA participants save all receipts for verification of compliance.
Tucker Administrators also provides a customized website for FSA so:
- Employee may view plan document, examine participant account balance information, claims status including pending and payment information through their secure login and password
- Employer may verify participation and eligibility, enrollment, individual deductions, individual participant account balance information, claims status including pending and payment information, and run Excel-compatible reports.