FSA
Administration
Nationally recognized FSA administrator specializing in technology and service.
Employer saves 7.65% on every employee dollar contribution
Fastest reimbursement available
One benefit card for all participant accounts
FSAs fall under IRS regulations but not all FSAs are created equal.
BASIC provides superior responsiveness for clients and participants. Our innovative technology provides the best experience for employees while taking advantage of this money saving benefit.
All participant benefit accounts and MyCash account are linked to a single card.
With a single app, participants can manage all their BASIC benefit accounts and benefit continuation (COBRA) plans.
MyCash is an unrestricted post-tax reimbursement account linked to participants’ BASIC Cards.
In three quick steps, participants can have BASIC pay healthcare providers directly on their behalf with our “Picture to Pay” feature. No paper, no postage, and no hassle for the participant. All with no additional fees for employers!
Flexible Spending Accounts (FSA) are part of the IRS Section 125, also known as a cafeteria plan. FSAs are an employer sponsored benefit that allows employees to set aside money on a pretax basis for qualified medical and/or child care expenses.
The IRS regulates what services or purchases are eligible under Section 125. Each benefit under Section 125 has maximum contribution limits and guidelines for when elections can change. Current IRS limits can be found at our Regulations Page.
Give your employees the ability to leverage pretax savings, request an FSA proposal today!
What is a Flexible Spending Account (FSA)?
A Flexible Spending Account (FSA) allows employees to allocate a portion of their taxable earnings to cover eligible medical, dental, vision, and dependent care expenses. By doing so, employees contributions to an FSA are made on a pre-tax basis, resulting in tax savings for both them and the employer. Offering an FSA can enhance a company’s benefits package, aiding in employee attraction and retention while potentially reducing overall healthcare costs. It’s important to communicate clearly about FSA benefits, eligible expenses, and any plan rules to ensure employees fully understand and utilize this valuable benefit.
What is the difference between HSA and FSA?
The main difference between a Flexible Spending Account (FSA) and a Health Savings Account (HSA) lies in who owns the account and the rollover rules. FSAs are employer-owned accounts where employees contribute pre-tax dollars to cover eligible healthcare expenses but typically must use the funds within the plan year or forfeit them (with some exceptions). HSAs, on the other hand, are individually owned accounts available to those enrolled in high-deductible health plans (HDHPs). Contributions to HSAs are also made with pre-tax dollars, but the funds roll over year after year and belong to the individual, even if they change jobs. Additionally, HSAs offer the potential for investment growth.
What is an example of an eligible expense for a Dependent Care FSA (DCFSA)?
Participants can use their DCFSA to pay for a variety of care services including preschool, summer day camp, before/after school programs and child or adult day care. The only caveat is that the care must be provided as they (and their spouse if applicable) are working, looking for work, or attending school full time.
Are there different types of FSAs?
There are several types of FSAs available to employers including Medical FSA, Dependent Care FSA, and Limited Purpose FSA. Each has their own rules regarding who is eligible to participate and which expenses qualify for reimbursement. BASIC also offers a Premium Only Plan (POP), which allows employees to pay for their employer-sponsored health plan premiums with pre-tax dollars.