Today’s Flex Spending Accounts (FSA) offer a wealth of opportunity for employees, as well as employers. The popularity of these programs has brought them to the forefront of compensation to where it’s now commonplace for HR to offer these programs.
With healthcare coverage a source of contention and continually up for debate, Flex Spending Accounts are giving employees much needed peace-of-mind. A way to plan for the unplanned, FSAs have expenses allocated if and when needed.
Many employees are unfamiliar with benefits that accompany a corporate FSA, or miss the opportunity to contribute entirely when first hired. It’s up to the employers, and in turn HR, to help promote the program internally, and educate employees to better understand how flex spending fits into their compensation packages.
During this whirlwind of a process, filing the required HR information can result in FSA elections being back burnered – without fully understanding what an employee may be giving up. It’s important that HR conveys the benefits of the program during these first few days of employment. This will ensure new hires understand the significance of a Flex Spending Account, and seize the opportunity for tax-free benefits as part of their compensation.
FSA allocations are deducted from a paycheck directly, however employees may not be clear as to how they can use these funds. Providing a resource sheet or FSA guide will help eliminate the common questions facing HR departments. An informational guide may include eligibility, define qualifying life-events for modifications, keeping track of receipts for reimbursement, and simple account management tips. Updates and expansions of program services are also cause for education reinforcement and helping to keep your FSA program top of mind.
Today’s workforce, while self-reliant, will seek help from HR if they have questions about their FSA. Providing self-service and an online management tools for flex spending accounts may allow employees to login and check the status of reimbursement without running to the nearest administrator. This will also support employee empowerment efforts by giving your team more control over their income allocation with on-demand access to their accounts.
Flex Spending Accounts can be a powerful tool for employers. As more hires look for supplemental or alternative benefits to round out compensation packages, FSAs are being initiated and integrated into HCM platforms.
Netchex offers workforce management solutions for today’s businesses. Our intuitive payroll and FSA administration, connected accessibility, and self-service features for employees, along with world-class customer support define our company.
Netchex streamlines the business of HR by combining intelligent systems with uncomplicated point and click functionality and a user-friendly interface.
Contact us and learn why more companies rely on Netchex. Explore our complete suite of HR services from benefits management to time and labor tracking, and discover how our flexible integration allows our technology to evolve with your business.