© 2009 ADP, Inc. An FSA = Everyday Savings. Attention Employees If anyone in your family has braces, please come to the Benefits Department to pick up.
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© 2009 ADP, Inc.
An FSA = Everyday SavingsAn FSA = Everyday Savings
Attention Employees
If anyone in your family has braces,please come to the
Benefits Department to pick up
25% off Couponsgood at any Orthodontist in the US.
2 ©2009. ADP, Inc.
Attention Employees
If you have a child in Day Care, please come to the
Benefits Department to pick up
25% off Couponsgood at any Day Care Center in the US.
3 ©2009. ADP, Inc.
2009. ADP, Inc.
Attention Employees
If you signed up for the Medical, Dental, or Vision plan please come to the benefits department to pick up
your
$300 check.
4 ©2009. ADP, Inc.
Attention Employees
If anyone in your family has drug prescriptions of any kind,
please come to the Benefits Department to pick up
25% off Couponsgood at any Pharmacy in the US.
5 ©2009. ADP, Inc.
► For many employers, FSAs are often the most under-utilized benefit in a company
▪ The average employee participation is 15% of the benefit eligible population.
► The under-utilization of FSAs is surprising because:
▪ Employees can save anywhere from 20% to 40% on their payroll taxes.
▪ Employers save 7% on their payroll taxes.
FSAs are a huge benefit to both employers and employees, yet they are under-utilized.
6 ©2009. ADP, Inc.
The Reality of the SituationThe Reality of the Situation
7 ©2009. ADP, Inc.
A Real Opportunity For Significant SavingsA Real Opportunity For Significant Savings
► Grew participation from 750 EEs (19%) to 2,400 EEs (60%)
► Participant contributions grew from an average of $800 a year to $1,400 a year.
► Average employee savings grew from $192 to $336
► Employer Payroll Tax savings grew from $42,000 to $235,200.
Employee savings based on 24% tax rate / Employer savings based on 7% payroll tax.
8 ©2009. ADP, Inc.
Drivers of low participationDrivers of low participation
1. The decision to elect Medical, Dental, or Vision plans is not linked with the need to have an FSA to help reduce how much money the employee will spend each year “out of pocket”.
2. Communications to employees is not in “consumer” language they can easily understand, but is instead in Benefits Industry language that is easily misunderstood or confusing.
9 ©2009. ADP, Inc.
Drivers of low participationDrivers of low participation
1. The decision to elect Medical, Dental, or Vision plans is not linked with the need to have an FSA to help reduce how much money the employee will spend each year “out of pocket”.
2. Communications to employees is not in “consumer” language they can easily understand, but is instead in Benefits Industry language that is easily misunderstood or confusing.
Medically Eligible Expenses
Pre-Tax BenefitX
Medical / Dental / Vision► Having another baby!!! Hospital and Physician
expenses► Pediatrician 2-3 times a month ► Immunizations / shots for school► Flu shots► Kids dental visits 2-4 per year► Adult dental visits 4 per year► OB/GYN visits► Adult Annual physicals► Eye doctor visits► Pulmonologist visits for child with asthma
Sandy BrownAge 34Married3 young childrenDual Income
Household
Pharmacy► Asthma Rx scripts 4-12 per year► 6-12 misc. Rx scripts for colds/infections
(Amoxicillin, penicillin, etc.)► Husbands cholesterol medication.► Prescription for Migraine Headaches
Dependent Care► Daycare $600 a month
A New Way To Tell The Story About FSA’s:
10 ©2009. ADP, Inc.
11 ©2009. ADP, Inc.
Presented in an easy to understand formatPresented in an easy to understand format
Multiple Media Options To Fit Client NeedsMultiple Media Options To Fit Client Needs
Posters & Table Tents
e-Video Messages
An FSA helps you plan for daycare expenses at a discount.
FSA saves you money. When you use tax-free dollars to pay for items and services you’d normally pay out-of-pocket, it’s like you just used a coupon for up to 40% off!
FSA isn’t tied to a certain kind of plan. The FSA can cover out-of-pocket costs associated with any kind of
HTML e-mails
12 ©2009. ADP, Inc.
13 ©2009. ADP, Inc.
Sample FSA Enrollment CampaignSample FSA Enrollment Campaign
14 ©2009. ADP, Inc.
ADP FSA Enrollment ProgramADP FSA Enrollment Program
ADP will:1. Provide an ADP resource to consult and help you organize
an enrollment campaign.2. Provide access to all the new messaging and material for
you to use in your communications to employees.
3. Provide “in the box” campaigns that you can just plug and play.
4. Execute a multi-week e-mail campaign for you if you want us to.
5. Track employee activity and measure results.
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