Employers may choose to administer an IRS allowed pre-tax flexible spending account cafeteria plan in-house or outsource with a cafeteria plan flexible spending account administrator or third party administrator (TPA).

Section 125 of the IRS code states an employer may implement a plan where in Flexible Spending Accounts a participant may submit unreimbursed insurance expenses on a pre-tax basis.  Examples include insurance premiums, doctors office co-pays, prescription co-pays, eye exams, eye glasses, contact lenses, laser eye surgery, orthodontics, and more…

Outsourcing with Flexible Spending Account Administrator vs. Administering In-house

Shed light on flexible spending account administratorsYou can make an argument for either outsourcing Cafeteria Plan Flexible Spending Account Administration or administering yourself, in-house.  I wanted to take a moment to discuss this very debate and like a lighthouse, shed light on why an employer should outsource with a qualified Cafeteria Plan Flexible Spending Account Administrator (TPA).

Outsourcing has been a valuable strategic management tool for decades.  But in today’s highly competitive and ever widening global marketplace, more emphasis is being placed on the advantages that outsourcing can give an organization.

The driving force behind the decision to outsource is the ability to allow your organization to focus on what you do best: core competencies, delivering a quality product or service.  Outsourcing allows you to redirect focus to your revenue driven processes and not on back-office cost center functions.  Outsourcing will allow your organization to be more efficient, more effective, and reduce overall costs.

Outsourcing opens up the doors for your organization to gain access to top-level professionals in your non-core areas, state of the art technology, industry defined best practices, and stay up to date on compliance and legal updates.

Partnering with a qualified Cafeteria Plan Administrator such as BusinessPlans, Inc. – myCafeteriaPlan.com will allow your employees to access their individual account information 24-hours a day, seven days a week from anywhere in the world.  As an employer, you also gain 24-hour Internet access.  You may query reports and check the status of your plan around the clock when you want and need information.

In essence, offering self-service to your employees gives them the feeling of control while at the same time reducing the company’s cost for personnel wages, technology, and supplies and boosting employee morale.  This is a win-win situation for the employer and employee.

Contact BPI today about outsourcing your flexible spending account (FSA) plan and choose between Traditional and Flex Debit Card administrative services.