by admin | Apr 17, 2026 | Blog
As Q1 comes to a close, employers are taking a closer look at their benefits to see what’s working, what’s not being used, and how to better support employees. With rising costs and evolving expectations, benefits strategies are shifting toward flexibility, personalization, and real utilization—especially when it comes to FSAs, HSAs, HRAs, and LSAs.
Why Utilization Matters
Unused benefits don’t just represent wasted spend—they reduce the perceived value of a company’s total rewards package. When employees don’t understand how to use their benefits or don’t see how they apply to their lives, engagement suffers.
That’s why employers are using Q1 as a checkpoint to reassess how well their benefits are actually performing.
How Employers Can Analyze Their Benefits
A smarter benefits strategy starts with data. Employers can begin by reviewing:
- Enrollment vs. usage: Are employees signing up for FSAs, HSAs, HRAs, or LSAs—but not spending the funds?
- Average balances and reimbursements: Do accounts sit unused or spike only at year-end?
- Employee demographics and life stages: Are benefits aligned with workforce needs like caregiving, wellness, or long-term savings?
- Employee feedback and questions: What benefits cause confusion or go unused year after year?
This analysis helps identify gaps in education, communication, or relevance—and highlights opportunities to redesign benefits for better outcomes.
The Shift Toward Personalized Benefits
One-size-fits-all benefits no longer meet the needs of today’s workforce. Employers are increasingly offering a mix of accounts so employees can choose what fits them best:
- FSAs for predictable healthcare or dependent care expenses
- HSAs for long-term healthcare and retirement savings
- HRAs to complement health plans with targeted reimbursements
- LSAs for lifestyle, wellness, and everyday flexibility
Personalized benefits lead to higher engagement and stronger employee satisfaction.
The Q1 Takeaway
Benefits that are easy to understand, relevant, and flexible are the ones that get used. And benefits that get used create happier employees and stronger retention.
As employers move into Q2, those who regularly analyze benefits performance—and adjust accordingly—will see the greatest value from their investment.
by admin | Apr 8, 2026 | Blog
Tax season sneaks up fast, and with the tax deadline right around the corner, it’s easy to forget that some employee benefits come with extra tax forms. If you used certain health or family‑related benefits this year, the IRS may expect a little more information when you file.
The good news? Only a few benefits actually need tax forms. Here’s a quick, simple breakdown.
Used an HSA? You’ll Need to File a Form
If you contributed to a Health Savings Account (HSA) or used HSA money for medical expenses, you’ll need to report it on your tax return.
Forms you may see:
- Form 1099‑SA – Shows how much money you took out of your HSA
- Form 5498‑SA – Shows how much money went into your HSA (for reference)
- Form 8889 – This form must be filed with your tax return
Even if you didn’t spend your HSA money, Form 8889 is still required if you made contributions.
Have a Dependent Care FSA? There’s a Form for That
If you used a Dependent Care FSA to pay for childcare or care for an adult dependent, this benefit must be reported.
Form you’ll need:
- Form 2441 – Dependent Care Expenses
This form helps the IRS make sure your dependent care benefits are reported correctly.
Helpful reminder: Healthcare FSAs do NOT require tax forms—only Dependent Care FSAs do.
Employer Helped With Adoption Costs?
If your employer provided adoption assistance, the IRS requires you to report it.
Form you’ll need:
- Form 8839 – Qualified Adoption Expenses
This form shows how adoption‑related benefits affect your taxes.
Quick Check Before You File
Before you hit “submit,” make sure you have tax forms for:
- HSA contributions or withdrawals
- Dependent Care FSA expenses
- Adoption assistance benefits
Having the right forms ready can help you avoid filing delays, errors, or IRS follow‑ups.
by admin | Jan 12, 2026 | Blog
Flu season is in full swing, and being prepared can make all the difference. The best part? You can use your FSA or HSA funds to stock up on these health essentials without spending extra out-of-pocket.
Here are the top 5 FSA/HSA-approved products to keep you healthy this season:
1. Thermometers
A reliable thermometer is a must for tracking fevers. Digital and smart thermometers are FSA/HSA eligible and help you monitor symptoms accurately.
🔗 Buy a FSA‑eligible thermometer
2. Over-the-Counter Medications
Pain relievers, fever reducers, and cough/cold medicines are often eligible with a prescription. Check your FSA/HSA store for flu symptom relief bundles.
🔗 Shop FSA‑eligible cold & flu meds
3. Humidifiers
Combat dry air and soothe congestion with a humidifier. Many models qualify for FSA/HSA coverage.
🔗 See eligible humidifiers
4. Saline Nasal Sprays
Affordable and effective, saline sprays help relieve nasal congestion and keep your sinuses clear.
🔗 Buy FSA/HSA‑eligible saline spray
5. Face Masks & Hand Sanitizers
Preventing the spread of germs is just as important as treating symptoms. Stock up on masks and sanitizers—both are typically covered.
🔗 Learn about mask & sanitizer eligibility
Why Use FSA/HSA Funds?
Using your tax-free dollars for flu season essentials is a smart way to save money while staying healthy. Don’t forget to check your FSA/HSA store for seasonal deals before your plan year ends!
For a full list of all eligible FSA items click here.
by admin | Dec 11, 2025 | Blog
Big news! The IRS just explained how the One Big Beautiful Bill Act (OBBBA) changes Health Savings Account (HSA) rules. Here’s what it means in plain language:
✅ 1. Telehealth Gets the Green Light
- If your high-deductible health plan (HDHP) covered telehealth before July 4, 2025, you can still put money into your HSA for the whole year.
- Only services on the official Medicare telehealth list count. In-person visits, equipment, or prescriptions don’t qualify unless listed.
✅ 2. Bronze & Catastrophic Plans Count as HDHPs
- Starting in 2026, bronze and catastrophic plans from ACA exchanges will qualify as HDHPs—even if they don’t meet the usual deductible rules.
- Employers can use ICHRAs to help employees buy these plans.
✅ 3. Direct Primary Care (DPCSA) Rules
- Monthly fee limits: $150 per person or $300 per family.
- Fees must be fixed and regular—no surprise bills for members.
- HDHPs can’t count these fees toward deductibles or offer extra primary care before the deductible.
✅ 4. Using Your HSA for DPCSA Fees
- You can use HSA money for DPCSA fees if they only cover primary care and follow IRS rules.
- If fees go over the monthly limit, you can’t add money to your HSA during that time.
- Employer-paid fees can’t be reimbursed from your HSA.
What Should You Do?
- Check your telehealth coverage.
- Update plan info for bronze/catastrophic HDHP status.
- Make sure DPCSA agreements follow the new limits.
- Share these changes with employees.
Bottom Line: These updates make HSAs more flexible for telehealth, ACA plans, and direct primary care—but you need to follow the IRS rules to stay eligible.
Source: Thomson Reuters
by admin | Sep 4, 2025 | Blog
Under ERISA, plan administrators must provide requested plan documents—like the Summary Plan Description—within 30 days of a written request from a participant or beneficiary. If they fail to do so, a court may impose a penalty of up to $110 per day, starting on day 31.
How This Affects FSAs, HRAs, HSAs, and Other Benefits
Many employers don’t realize that Health FSAs, HRAs, and some HSAs are considered ERISA-covered welfare benefit plans. That means they are subject to the same documentation and disclosure rules as other ERISA plans. If a participant requests plan documents for one of these benefits and the employer fails to respond within 30 days, the same $110/day penalty could apply.
Even though HSAs are typically owned by the employee, employer-sponsored HSAs may still trigger ERISA obligations if the employer is too involved in managing the account.
Does the Penalty Increase Over Time?
No. While some ERISA penalties are adjusted annually for inflation, the $110/day penalty for failing to provide plan documents is not subject to automatic inflation adjustments. It has remained unchanged since it was last increased from $100 in 1997.
Tips to Stay Compliant
- Ensure all ERISA-covered plans—including FSAs, HRAs, and HSAs—have up-to-date plan documents and SPDs.
- Respond to participant requests in writing and within the 30-day window.
- Train HR and benefits staff on ERISA disclosure rules.
- Keep documentation organized and easily accessible.
Source: Thomson Reuters
