Help your employees reduce the cost of their healthcare,
while lowering your organization’s tax liability.
Give your employees a complete benefits package with our administrative services offerings from PacificSource Administrators, Inc.
Premium Only Plans
Premium Only plans (POP) lower the cost of medical insurance for employees by allowing them to pay their portion of the insurance premium with pretax dollars, deducted from their paycheck. This can reduce an employee’s tax liability by 22% to 40%.
And, when employees reduce their taxable salary, you have lower FICA payments and other payroll taxes for your organization.
Flexible Spending Accounts
A Flexible Spending Account (FSA) enables employees to pay for specific health and childcare expenses with pretax dollars. An FSA reduces your employees’ taxes and your organization’s FICA payments.
Dependent Care FSA
Allows employees to set aside pretax money to pay for dependent care expenses, such as childcare or elder care. Employees may either participate in this FSA or take the IRS standard dependent care tax credit, but not both for the same expenses. The FSA typically provides a greater tax savings than the tax credit option.
Healthcare Expense FSA
Allows employees to set aside pretax money to pay for healthcare expenses that are not covered by a health plan. Eligible expenses include health insurance deductibles, coinsurance, copayments, dental care, vision care, and prescriptions.
Limited FSA (LFSA)
Lets participants set aside pretax dollars to use toward reimbursable dental and vision expenses. This account can be utilized for members (or their spouses) who are currently contributing to a Health Savings Account.
Health Reimbursement Arrangements (HRA)
An account offered by an employer to help pay for the health-related expenses of employees, and if eligible, their dependents. These expenses are ones that aren’t paid by any other source. The employees must be enrolled in the group medical plan to be eligible to enter the HRA.
Many companies pair the HRA with a high-deductible medical insurance plan, and allow employees to use HRA funds to pay expenses while they’re meeting the deductible. Often, employers can fund the HRA with money saved on health insurance premiums simply by switching from a benefit-rich copay plan to a high-deductible health plan.
Transportation Benefit Plans
Allows employees to set aside pre-tax dollars to pay for commuting. The Transportation Account allows your employees to pay for their work-related transit passes and/or parking expenses with tax-free income. The dollars included in the account reduce the reportable and taxable income, which means the employee saves money by paying less federal tax. And, because your total payroll is smaller, you save significantly on FICA taxes.
Retiree benefit administration will save you valuable time and provide your retirees with great service. We collect and remit payment to carriers, manage eligibility, and provide monthly reporting. Retirees also have access to their information online, 24 hours a day, with our secure COBRA web portal.
COBRA is an acronym for the Consolidated Omnibus Budget Reconciliation Act, which is a mandated health insurance benefit that allows workers and their families to continue their health insurance coverage after losing their jobs. COBRA administration can be tricky and time-consuming, and failing to adhere to COBRA laws can be very costly. We take over all necessary paperwork, notifications, billing, and personal contact required to make the transition into COBRA a smooth and compliant one.