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an employee using a flexible spending account to pay for her eyeglasses prescription

Employee Health Benefit Accounts

Health benefits accounts play an important role in your benefits strategy and can help you:

  • Control healthcare costs, especially in combination with a high-deductible health insurance plan
  • Attract employees
  • Reduce your tax bill

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The Value of Employee Health Benefits Accounts

Health benefit plans allow employers and employees to allocate pretax funds for qualified medical expenses and include:

  • Tax savings for employers and/or employees
  • Tax-free distributions/claims for qualified medical expenses
  • Carryover of unused contributions (HSA for future years, HRA at employer’s discretion)
  • Tax-free qualified earnings distributions from HSA
  • Certain transferable benefits between employers
  • Paychex benefit specialists support
a full-time employee using his health insurance for an annual checkup

Lower Your Tax Burden With Health Benefit Accounts Administration

Benefits accounts can reduce FICA taxes and an employee’s taxable income because contributions are made before taxes are taken out.

Paychex Flex® Benefits Administration Overview Video Cover
Paychex Flex® Benefits Administration Overview
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Employee Health Benefit Account FAQs

  • What Is a Benefit Account?

    What Is a Benefit Account?

    A benefits account is a solution offered by employers to help individuals manage healthcare expenses. These accounts can assist in covering out-of-pocket insurance costs such as medications, deductibles, and more. An employee benefits account often provides tax savings and comes in various forms, each with its own stipulations.

  • How Do You Set Up a Benefit Account?

    How Do You Set Up a Benefit Account?

    Employee health benefit accounts are typically offered through an employer. To begin the process, employees should work closely with resources such as any health account services they may have access to or their HR professionals for specific guidance and instruction. They will likely undergo an eligibility and enrollment process based on the benefits package, employment status, and other factors.

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