The Prepaid Benefits Card makes the Preferred FSA, HRA and CRA easier to use by reducing the manual claim submission process with a swipe of the card. This means that plan participants will be more satisfied with their benefits and more likely to use them.
The Prepaid Benefits Card gives participants more access to their FSA funds and they are more likely to enroll in the plan, and contribute more in the plan in subsequent years.
Employers can offer the Prepaid Benefits Card for the Preferred FSA, HRA and CRA.
The advantages of the Card to you as an employer are:
- FICA Tax Savings – implementing the Prepaid Benefits Card has resulted in increased employee participation, as well as increased annual election amounts year after year. Employers have seen immediate increases of 20 – 40% in participation, and annual contribution increases ranging from 10 – 50%. That translates into significant FICA tax saving that in some cases, can pay for the program.
- IRS Compliance – Advanced auto substantiation technologies can verify the eligibility of many transactions, minimizing the need to request receipts from the cardholder. Letters requesting receipts are sent only when necessary.
The advantages of the Card to your employees are:
- Cash flow friendly – cardholder spending accounts (e.g. FSAs) are directly debited for
eligible expenses, eliminating “out-of-pocket” cash payments and then waiting for reimbursement.
- Convenient and easy to use – eliminates claim forms.
- Simple to track – balances are available online 24/7 – this detailed tracking can be used
to predict more accurate (and increased) annual election/salary reduction amounts in subsequent years.