ADP Large Business Spending Account Administration
ADP’s Spending Account Administration provides your employees an easy-to-use, affordable way to contribute pre-tax dollars toward their health and welfare, dependent care and commuter expenses, while providing tax savings to your company.
Spending Account services include:
Flexible Spending Account (FSA)
Flexible Spending accounts allow your employees to use tax-free dollars for qualified doctor visits and medical expenses such as prescriptions, over-the-counter medications and durable medical equipment.
Your employees receive:
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Tax savings by setting aside pre-tax dollars to pay for qualified medical or childcare expenses
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Timely communications regarding their FSA activity
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Real-time, secure internet access to their FSA information and FSA plan activity
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Reimbursement checks or direct deposit of payments with payment explanation, and year-to-date FSA summary
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An ADP FSA Card, a secure VISA®-branded prepaid card, to which ADP electronically applies eligible FSA expense reimbursements
Your organization receives:
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FICA tax savings for FSA contributions
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Seamless, automated payroll deductions
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Daily claims processing and daily distribution of spending account payments
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Web access to ADP FSA service and support
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Secure access to FSA plan participant information
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Management reports
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Basic non-discrimination testing, conforming to IRS regulations
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Expert handling of complex FSA issues and requirements
When your company offers FSAs to your employees, you both benefit. And ADP provides you with the tools for hassle-free FSA benefits administration.
Commuter Benefits
Under the Transportation Equity Act of the 21st Century, employees can use pre-tax contributions to pay for commuting expenses. Valuable to both your organization and your employees, commuter benefit contributions are exempt from Federal, most State and Social Security income taxes, as well as payroll tax. With ADP Online Commuter Benefits, you can provide your employees this valuable benefit without additional administration on the part of your HR practitioners.
Your employees receive:
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Tax savings by using pre-tax dollars to pay for qualified commuting expenses such as vanpooling, public transportation and parking
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Eliminates the perception of “paying twice” – contributions are made in the month of media order
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Flexibility of monthly or recurring orders allows for a customized employee solution
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Convenience of home delivery of passes and other fare media
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Real-time access to accounts and order tracking via telephone or Internet
Your organization receives:
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Tax savings with participant contributions
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Simple, automated and consolidate deduction transactions
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Overall compliance with Section 132 regulations
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Increased employee satisfaction with virtually no additional costs to your organization
ADP Online Commuter Benefits offers a simple, employee-friendly ordering and delivery system for all of your plan participants’ commuting needs while ensuring employers that their plan is being administered in strict compliance with IRS regulations.
Interested in learning more? Contact us or call 1.800.CALL.ADP, ext. 411 (1.800.225.5237, ext. 411).