After several months of discussion, Payne County’s elected officials have selected a provider to offer flexible spending accounts as a benefit for their employees.
A 125 Plan flexible spending account allows employees to reduce their taxable income by setting aside up to $2,500 pre-tax from their paychecks each year. The total amount is available immediately and can be used to pay medical bills, buy medications and cover other health care costs.
The Internal Revenue Service puts limits on how account holders can spend the money and requires documentation for expenses.
Three providers gave the budget board overviews of their programs after meeting with the Payne County Board of Commissioners previously to explain the potential tax savings for the county and its employees.
A model presented by Premier Consulting showed an employee earning $24,000 per year could save more than $1,000 in taxes by paying health premiums pre-tax and setting aside money for health care spending through salary reduction.
The plans would also save the county money by cutting down on the amount of tax it has to collect and remit for each employee.
After discussing the pros and cons, the budget board selected Premier Consulting, its current provider for supplemental insurance products, as its flex plan administrator.
Premier Consulting President Dason Gwartney asked the budget board to give him time to develop a proposal showing services from a variety of vendors to give them a broader range of options.