Tax-Favored Benefits: Maximize Your Employee Advantage
We go beyond traditional employee benefits to bring you a comprehensive suite of tax-favored options. We understand that providing valuable perks not only enhances your employees’ well-being but also contributes to your organization’s success.
What are Tax-Favored Benefits?
Tax-favored benefits are a powerful way to give your employees a financial edge while optimizing your organization’s tax strategy. These benefits allow employees to set aside pre-tax dollars for various qualified expenses, providing both immediate and long-term financial advantages.
Our Tax-Favored Benefits Portfolio:
Medical Expense Reimbursement Plan (MERP):
MERP is an employer-sponsored benefit plan designed to reimburse employees for certain qualified medical expenses. MERPs are often structured to cover medical expenses not covered by the primary health insurance plan, such as deductibles, co-pays, and other out-of-pocket costs. Employers contribute funds to the MERP, and employees can submit eligible medical expenses for reimbursement from this account. It’s essential to note that the specific features and guidelines of MERPs can vary among employers, and they are subject to regulatory requirements.
Health Reimbursement Account (HRA):
HRA is an employer-funded benefit plan that reimburses employees for qualified medical expenses. Employers contribute to the HRA, and employees can use these funds to cover eligible healthcare costs, such as deductibles, co-pays, and other out-of-pocket expenses. HRA funds are typically not taxed, providing a tax advantage for both employers and employees. The specific details of an HRA, including contribution amounts and eligible expenses, can vary based on the employer’s plan design.
Flexible Spending Account (FSA):
A flexible spending account allows employees to contribute pre-tax dollars to cover eligible medical, dental, and vision expenses. This empowers your workforce to manage healthcare costs more efficiently.
Limited Purpose Flexible Spending Account (LFSA):
LFSA is a tax-advantaged benefit account that allows employees to use pre-tax dollars for specific qualified expenses, typically limited to dental and vision care.
Dependent Care Assistance (DCA):
Our DCA program enables employees to save on childcare expenses by using pre-tax dollars. It’s a valuable resource for working parents, promoting work-life balance and financial stability.
Health Savings Account (HSA):
The HSA is a tax-advantaged savings account paired with high-deductible health plans. It provides a triple tax advantage—contributions are pre-tax, interest grows tax-free, and withdrawals for qualified medical expenses are tax-free. It’s a powerful tool for long-term health and financial planning.
Transit Benefits:
Helping your employees commute without breaking the bank. Our transit benefits program allows employees to set aside pre-tax dollars for qualified commuting expenses, promoting eco-friendly transportation choices.
Why Choose NationalHR for Tax-Favored Benefits?
Tailored Solutions: We understand that every organization is unique. Our experts work closely with you to tailor tax-favored benefits that align with your company’s culture and the needs of your diverse workforce.
Educational Resources: We believe in empowering both employers and employees with knowledge. Our resources and support ensure that everyone understands the full potential of their tax-favored benefits.
Seamless Administration: Managing tax-favored benefits can be complex, but we make it simple. Our user-friendly platform and dedicated support team, coupled with our in-house Third Party Administrator (TPA), streamline administration, making it easy for both employers and employees to navigate.
Get Started with NationalHR
Ready to take your employee benefits to the next level? Contact us today to learn more about how NationalHR can help you implement tax-favored benefits that drive employee satisfaction and enhance your organization’s financial strategy.