Commuter Choice accounts help reduce the strain on the paychecks of your employees’ work-related transportation expenses. Section 132 of the Internal Revenue Service (IRS) code allows them to use “pre-tax” dollars, up to a monthly maximum, for eligible mass transit and parking expenses.
Benefit Strategies makes it easy to take advantage of this pre-tax benefit and start saving money! There are two types of Commuter Choice accounts; employees can enroll in one or both.
A Parking Account allows employees to use pre-tax dollars to pay for work related parking expenses. A Transit Account allows employees to use pre-tax dollars to pay for expenses incurred traveling to and from work. A transit pass is any pass, token, fare card, voucher or similar item entitling a person to mass transit transportation.
To enroll, employees simply decide how much money they need for work related mass transit and/or parking expenses each month. The amount within the monthly pre-tax maximum will be deducted from their paycheck each pay period, prior to Federal, State and FICA taxes being calculated. Employees pay less in taxes so they save money! The monthly election amount will continue throughout the plan year unless they decide to reduce, increase or stop their election.
Benefit Strategies’ suite of product offerings includes Direct Billing administration for collection of premiums when employees temporarily leave your employment, or go on leave without pay, for medical or other approved reasons such as LOA, FMLA, and Furlough.
Benefit Strategies will bill employees directly for their responsibility of premiums, providing them with a billing letter reflecting premiums due per plan and payment coupons through the end of the leave period, or per pay period as appropriate. We will also handle the collection of premiums from the individuals and provide you with detailed reporting regarding remitted premiums and outstanding premiums due, so that you may take action on balances due when an employee returns to work or is terminated.
Direct Bill participants have the advantage of paying premiums via recurring ACH from their savings or checking accounts, on a date that is convenient (within the established grace period) for their budgeting purposes. This makes it so they never have to write a check or risk interruption of coverage with a missed payment.
Direct Billing administration – like our other health and welfare administration services – is fully supported by our knowledgeable, responsive customer service team who will answer any questions your employees may have regarding their premium billing or resolve any issues in a timely fashion.
Please note that Benefit Strategies, LLC does not determine LOA eligibility or provide leave substantiation services.
Nearly 90% of today’s retired employees pay all or a significant portion of their premiums for benefit continuation. Benefit Strategies simplifies the management of benefits administration for your HR team, and provides comprehensive support to your Under Age 65 and Over Age 65 retired employees and their covered dependents, and notification of Medicare eligibility for U65 retirees. Communications can be customized to mirror employee handbook language and reflect your specific retiree program rules.
When an employee goes on approved retirement, Benefit Strategies will take over the ongoing administration and maintenance of that retiree’s benefit programs, dealing directly with the appropriate carriers so you won’t have to. We will bill retirees directly, providing them with a retiree benefit continuation welcome letter and payment coupons through the end of their first retiree benefit year. We provide updated payment coupons upon plan renewal or upon plan or rate changes.
We will also handle the collection of premiums from the retirees. Retirees have the advantage of paying premiums via recurring ACH from their savings or checking accounts, on a date that is convenient (within the established grace period) for their budgeting purposes. This makes it so they never have to write a check or risk interruption of coverage with a missed payment. Alternatively, retirees may pay their premiums monthly, or several months in advance, via check or money order.
We can manage your retiree open enrollment process from start to finish, providing retirees with complete benefit packages, including:
Retiree benefit and billing administration – like our other health and welfare administration services – is fully supported by our knowledgeable, responsive customer service team who will answer any questions your retirees may have regarding their continuation coverage or billing and resolve any issues in a timely fashion.
Benefit Strategies provides full service Tuition Reimbursement services through the use of software which automates interactive approvals between employees, their managers and Human Resources. Benefit Strategies will base the setup components of our system to be completely tailored to your company’s Tuition Reimbursement Policy.
Enables employee self-service by allowing access to their account any time. Employees can submit applications, track status and enter grades without the traditional paper forms and time consuming phone calls, allowing more timely approvals.
Benefit Strategies offers customized reports so Managers can actively administer ongoing liability in their Tuition Programs.
Employees currently paying a portion of their employer-sponsored medical, dental, or vision insurance plans on an after-tax basis through payroll reductions can elect to convert these contributions to a pre-tax basis, thus saving the Federal, FICA, and State (where applicable) taxes. In addition, the employer realizes tax savings as their employees’ gross earnings are decreased accordingly.
When a pre-tax benefit an employer offers is required by the IRS to be in a non-discriminatory status, having non-discrimination testing done is a great way to show your plan is in compliance. This non-discriminatory status is required of Section 125 Cafeteria Plans (including Health and Dependent Care FSAs and pre-tax HSA contributions) and HRAs. Benefit Strategies performs annual non-discrimination testing upon request. Current clients offering plans through Benefit Strategies that are required by the IRS to be in a non-discriminatory status can find the testing fee in their Service Agreement and should request testing through their account manager or by indicating they want testing done on their implementation or renewal paperwork. All other clients and non-clients wishing to have testing done should contact our Sales department for a proposal at email@example.com or 888-401-3539.