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The Benefits of FSA Plan Administration

The Benefits of FSA Plan Administration

Basic Administration

ProBenefits handles all plan setup and administration of both the premium portion of the plan and the FSA components (Health FSA and Dependent Care FSA). This is not a "claims processing only" service as some vendors provide, where a vendor provides mainly claims processing, leaving all administrative responsibilities to the employer. In addition to efficient and accurate claims processing, administration by ProBenefits includes:

  • data verification at plan setup and renewal;
  • accurate processing of participant hires, terminations, and status changes;
  • oversight and assistance with legal documents as required by ERISA;
  • IRS-required discrimination testing of the plan; and
  • assistance with additional issues that arise in the context of the plan.

ProBenefits' services and plan responsibilities are further described in the Service Agreement - we'll be happy to provide you with a copy of a proposed Service Agreement to review.

Tax Savings

ProBenefits assists Employers with plan design ensuring maximum tax savings for Employers and participants. Flex plans typically results in substantial tax savings for your company - with no downside! For every FSA plan, every dollar contributed by participants (for premiums and FSA accounts) is exempt from federal income tax, state income tax, and FICA (including Social Security and Medicare). Also, on the same dollars contributed by participants, the Employer is exempt from all FICA matches (7.65% of all plan dollars). Fees for ProBenefits FSA administration are fairly low in comparison to the tax savings generated by the plan. Employer FICA savings generated by the plan basically ensures that the plan more than pays for itself. For more information on potential tax savings, ask us for a Tax Savings Assumption worksheet.

Quality, Compliant Legal Documentation For Your Plan

ProBenefits utilizes its resources to provide current, compliant legal documentation for all plans. Legal documents distributed by ProBenefits have been drafted and approved by retained counsel, and include the latest provisions stipulated by applicable law.

High Level of Customer Service

ProBenefits' valued customer service approach is designed specifically for FSA plans. A ProBenefits administrator is assigned to each plan and handles all aspects of plan administration for the plan - a "single point of contact" for your company. Also, the entire ProBenefits staff is available to assist with questions (from the company or individual participants) or other customer service needs. ProBenefits offers a company website in addition to a ProBenefits Online account tracking system to help administrators and participants access and understand the plan at all times.

Proactive Monitoring, Compliance, and Technical Support

Plans administered by ProBenefits are compliance-ready plans that receive continuous monitoring and proactive technical support. In addition to your plan administrator with substantial expertise in this area, ProBenefits has in-house benefits attorneys who assist with compliance and technical support for all plans. ProBenefits works diligently to assist its clients with compliance concerns, including the need to comply with IRS requirements on non-discrimination of flexible benefit plans. Where applicable, ProBenefits tests plans and communicates testing results and information to the plan sponsor.

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