Flexible Spending Accounts

A valuable addition to your benefits package

Budgeting for healthcare expenses can be stressful for your employees. But with an employer-sponsored flexible spending account (FSA) from Omnify, you can offer them peace of mind by giving them an option to set aside tax-free dollars to use on healthcare costs throughout the year. In addition to traditional FSAs, we offer accounts for dependent care and limited purpose expenses to round out your benefits package.

Talk to us today about how you can help your employees benefit even more.

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The Omnify difference

One platform to administer

We offer full support for HSAs, FSAs, LPFSAs, DCFSAs, wellness accounts, and 125 Cafeteria Plan document creation from one central platform.

One service team

Get support from experts who know employee benefits inside and out — real people, with real answers, in real time.

One online and mobile experience

We make it easy for your employees to view and manage their health savings accounts from anywhere.

One benefit card

All accounts and funds are on a stacked card, and our intelligent platform categorizes charges accordingly.

Andrea Howard

Our team is available to answer questions, solve problems, and help you make the most of your benefits package. Because at Omnify, your benefits have people — real people (like Andrea!) who are there when you need us.

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Frequently Asked Questions

Are an employer’s contributions to an HSA treated as a deductible health care expenses?

The tax treatment of employer HSA contributions depends on how the business is incorporated. For sole proprietors, partnerships, and S-corporations, contributions to a partner’s HSA will be treated as a distribution to the partner and included in the partner’s income and may be deductible by the partner but not by the business (see IRS Notice 2005-8 for treatment of HSA contributions in exchange for guaranteed payments of services rendered for partners and two percent shareholder employees of S-corporations). For larger corporations, employer contributions are treated as employer-provided coverage for medical expenses under an accident or health plan.

May an employer fully fund the employee’s HSA at the beginning of the year?

Yes. An employer may fully fund the employee’s HSA at the beginning of the year, however HSAs belong to the individual and not the employer and the employer has no further control over the accounts after they have been funded. As a result, many employers elect to fund employee’s HSAs periodically throughout the year.

Does an employer have to make contributions to an employee’s HSA?

No. Employers are under no obligation to make any contributions to their employees’ HSAs. Many employers find that contributing to employees’ HSA accounts may help improve adoption of HDHPs and HSAs, especially if they are transitioning from a more traditional type of health coverage.

Do employees get a tax benefit from an HSA?

Employee contributions to an HSA can be made by payroll deductions or personal deposits. When an employee makes contributions through a payroll deduction and is ran through a Section 125 plan (also called a salary reduction or cafeteria plan) these dollar are pre-tax, including social security tax. If employees make personal deposits into their HSA it is on a post tax basis. The amount can be deducted from their taxable income but they will not recover the social security tax.

Is this really less expensive for the business?

Yes. High-deductible health plan premiums are much lower than the typical HMO and PPO premiums. Many businesses are finding these health plans affordable for their companies and their employees.

What is a high-deductible health plan (HDHP?)

An HDHP is a health insurance plan that offers higher deductibles and lower premiums than a traditional health insurance plan. With an HDHP, the annual deductible must be met before plan benefits are paid for services. In order for an HDHP to be paired with a Health Savings Account, it must meet the following requirements.

IRS Guidelines for a qualified HDHP:

Year Annual Deductible Out-of-Pocket Expenses
2019 At least $1,350 for individual coverage and $2,700 for family coverage Not exceeding $6,750 for individual coverage and $13,500 for family coverage
2020 At least $1,400 for individual coverage and $2,800 for family coverage Not exceeding $6,900 for individual coverage and $13,800 for family coverage

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