Pre-Paid Benefit Card
Benefit cards are available with the following Benefits Network programs:
- Flexible Spending Accounts (FSAs).
- Health Reimbursement Accounts (HRAs).
Pre-paid benefit cards provide easier benefit access and increased employee satisfaction for tax-favored accounts.
Want to learn more? Contact Benefits Network today!
Pre-Paid Cards Benefit Employers
As an employer, you can offer your employees a new, low-cost, high-value benefit that employees love in an age of takeaways and cost shifting.
FICA Tax Savings. It has been shown that implementing pre-paid benefit cards results in increased employee participation, as well as increased annual election amounts year after year. Employers have seen increases of 20-40% in participation and annual contribution increases ranging from 10% to 50%.
The end result can be significant FICA tax savings 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.
Pre-Paid Cards Benefit Employees
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. Easy to use pre-paid benefit cards eliminate 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.
Contact Benefits Network today! Let us help you determine if a Pre-Paid Benefit Card is right for your business and your employees.