Flexible Spending Accounts (sections 125/135):

Flexible Spending Accounts (FSA's) provide a relatively low-cost benefit that is targeted to meet employee needs in three critical areas: Health Care, Dependent Care, and Transportation Expenses. TGIS's complete FSA service allows employers of all sizes to take advantage of the tremendous tax benefits provided under Section 125.

IRS Section 125 & Tax Savings:

Section 125 of the Internal Revenue Code allows employees to pay for group insurance premiums, un-reimbursed health care expenses, qualified dependent care expenses, and certain transportation expenses with pre-tax dollars

· Employers are not subject to matching FICA and FUTA contributions for employee dollars contributed to FSA plans. Employees participating in an FSA plan reduce federal, FICA, and state taxes. Through an FSA plan, qualified health and dependent care expenses not reimbursed by insurance or other reimbursement programs are paid with pre-tax income.