New Service Provided by MEA!

CAFETERIA PLAN ADMINISTRATION

In response to numerous requests from our member companies, MidAtlantic Employers’ Association (MEA) now offers Cafeteria Plan administration that includes automatic debit card technology (Master Card/VISA) which provides easy, secure Internet access for Flexible Spending Accounts (FSA) and Dependent Care Accounts (DCA). MEA’s member satisfaction survey indicated that FSA administration was a service that you wanted us to provide. After thorough research, we are pleased to roll out this new benefit to our members.

What is a Flexible Spending Account (FSA)?

An FSA is an IRS-approved, tax-exempt account that allows employees to save money on eligible medical/dental expenses. On an annual basis, employees elect the amount of money that they want deposited each pay period into their flexible spending account and this amount is deducted from their gross pay before taxes are calculated. These funds are exempt from federal income and Social Security and Medicare taxes. As the employees incur eligible expenses they may use their FSA debit card to automatically withdraw the funds from their account and pay the charges via Master Card/VISA. Employees may use this special debit card at any provider of eligible medical/dental services that accepts Master Card/VISA. An average employee in a 30% tax bracket will save approximately 30% using this pre-tax vehicle. Employers can typically fund the FSA administration fees of this plan through their FICA tax savings, thus making the plan remain cost neutral to their bottom line.

What is a Dependent Care Account (DCA)?

A Dependent Care Account allows employees to set aside part of their salary each pay period on a pre-tax basis to reimburse eligible expenses incurred for the care of their child, disabled spouse, elderly parent, or other dependent who is physically or mentally incapable of self-care, so that the employee (and their spouse) can work or actively look for work.

MEA has undertaken a detailed review of the providers of this service and has elected to partner with The Employers Association and MBI Benefits Card to make this popular service available to our valued members. The Employers Association is a “sister” association to MEA and MBI is the industry leader in debit card technology. MBI has over one million card holders and was the first company to offer employee benefit debit cards for FSAs. It is also the largest and most experienced provider in the business. In addition to setting up and administrating the FSA plan, discrimination testing is included in the start-up, along with any future plan amendments necessitated by IRS regulatory changes. All needed forms and marketing pieces are included, along with the MEA Benefits Team participation in your FSA open enrollment meetings.

Contact your MEA Benefits Team today to learn more about this exciting new plan. Ask for a quote and see how our services and rates compare with your current arrangement.