ARE YOU MAXIMIZING YOUR EMPLOYEE TAX SAVINGS?

As a small business owner, all contributions that are provided for employee benefits are tax-deductible. In addition, any money used by employees to purchase benefits allows the business owners to save 7.65% on payroll taxes. If no contributions are made to a plan, the owner would actually save money by installing an employee benefits package.

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ARE YOU PROVIDING TAX SAVING OPTIONS FOR YOUR EMPLOYEES?

With deductibles rising by 12 percent on an annual basis, are you giving options to your employees to pay for out-of-pocket medical expenses on a tax-free basis? Below are the options that are available.

Health Savings Accounts

  • Pays for out-of-pocket medical expenses on a pre-tax basis.
  • HSA compatible, high-deductible health plan required.
  • Annual limits are $3,500 for an individual plan and $7,000 for a family plan. Out dates data, $3650 and $7300.
  • Unused funds stay with the employee and are not forfeited back to the employer.
  • Investment features are available.

Download the HSA current investment options info here

Health Savings Account (HSA) Goal Calculator

Flexible Spending Accounts (FSA)

  • Pays for out-of-pocket medical expenses on a pre-tax basis.
  • All employees are eligible as long as a group medical policy is offered.
  • Annual limit of $2,700. Outdated data current $2750 – likely will go up by the end of October.
  • $500 rollover allowed on an annual basis $550 but likely will go up if the health FSA limit is raised.

Download the FSA Fact Sheet here

Flexible Spending Account (FSA) Calculator

EMPLOYEE BENEFITS TECHNOLOGY COMMUNICATION definition highlighted

Dependent Care
Assistance Program

  • Pays for daycare, preschool, and elder care on a pre-tax basis
  • All employees are eligible as long as a group medical policy is offered
  • Annual limit of $5,000
  • All unused funds are forfeited back to the employer

Fortress Benefits is a proud partner with Advantage Administrators. Please visit their website for more information on these programs.