Flexible Spending Accounts   full text here
A Flexible Spending Account or Section 125 plan is a benefit plan that allows participants to re-direct some of their earnings into a customized spending account.  The benefit of this plan is that the plan is set up in accordance with Section 125 of the Internal Revenue Service code so the benefits can be paid with tax free money.  A Section 125 plan is completely income tax free.  No Federal Income Tax.  No State Income Tax in most states.  No Social Security or Medicare Tax. 

A Section 125 plan can provide benefits such as health insurance, group term life insurance and flexible spending accounts. Flexible Spending Accounts or FSAs are a special feature of the cafeteria plan.  Using an FSA, an employee can be reimbursed with tax free dollars for certain medical expenses.  Anything from eye glasses to dental work to drug prescriptions can be included in an employee's FSA. Flexible Spending Accounts can also be used to pay for child or adult daycare services. Participants are cautioned to not be too ambitious when setting aside funds for an FSA, if you don't use all of your FSA money during the plan year, you lose the remainder.

Let SDSA help you save tax dollars with a Section 125 employee benefit plan.  These plans are a great IRS approved way to save you money but they can be a burden to setup and maintain. There is significant government reporting and US tax laws are constantly changing.  At SDSA we keep abreast of the current IRS regulations to keep your plan in compliance and we handle all government reporting. 

Contact Select Data Service Administrators toll free at 888-698-1429 or sales@selectdataservice.com for more information about Section 125 employee benefit plans.  

Health Reimbursement Arrangements  full text here
A Health Reimbursement Arrangement or Section 105 plan is an employer funded tax-free rollover account. This benefit is usually offered as part of a "consumer-driven" or "defined-contribution" plan.  In a typical HRA plan, a high-deductible health  insurance plan is  provided to cover health care expenses to employees at reasonable rates. The employer then funds a spending account for each employee to cover first-dollar healthcare expenses.  All or a portion of the funds remaining in the HRA at the end of the plan year rollover tax-free to the next year.  The funds deposited into the HRAs are treated as business expenses rather than salaries saving FICA and unemployment taxes.

SDSA administrative services include timely claims processing, reimbursement checks & direct deposit,  employer & employee reporting,  nondiscrimination testing, SPD and IRS Form 5500 preparation.  Contact Select Data Service Administrators toll free at 888-698-1429 or sales@selectdataservice.com for more information about Section 105 roll-over plans.  

Qualified Transportation Plans  full text here
A Qualified Transportation Plan or Section 132 plan enables employees who where mass transit or parking costs are used on a regular basis for commuting to and from work to be reimbursed for these expenses from a pre-tax account, which increases the employees' disposable income.  There are two types of Qualified Transportation plans: the Qualified Transit Plan and the Qualified Parking Plan.

SDSA administrative services include timely claims processing, reimbursement checks & direct deposit, and employer & employee reporting.  Contact Select Data Service Administrators toll free at 888-698-1429 or sales@selectdataservice.com for more information about Section 132 transportation plans.  

Benefits Card    NEW  full text here
Benefits Cards (debit cards) eliminate the "lag time" in claims reimbursement.  Rather than paying the provider for eligible expenses with a personal check and then faxing the receipts to have your reimbursement check mailed to you, just swipe your Benefits Card at a provider with a medical/healthcare code.  All substantiation is made after the purchase!  Pay directly from your pre-tax account instead of your pocket!

NOTE: The Stored Value Card is a benefit offered though your Employer. Please check with your HR Department if you are interested in taking advantage of this new offer.