Flexible Spending Accounts (FSAs) enable eligible employees to pay for certain medical and dependent care expenses with pre-tax dollars. Contributions are deducted from participating employees' paychecks each pay period before federal income and Social Security taxes are calculated. Then, as employees pay for eligible expenses, they are reimbursed from their FSA. The result: employee income taxes are reduced, they get to take home more of their paychecks, and they pay no taxes on the reimbursements.

ADP Resource, through ADP Benefit Services®, offers complete FSA administrative services. Features of the service include:

• Payroll integration. The plan is integrated seamlessly with ADP's payroll systems, so participant contributions are deducted and deposited as part of our overall payroll processing service.



• Enrollment support. ADP provides your company with standard enrollment and claims forms as well as participant enrollment brochures and welcome materials for new participants.



• Daily claims processing. Once a claim has been approved, the request for payment is processed the same day.



• Flexible payment options. Reimbursements may be paid by check, direct deposit into the participant's account, or stored value card.



• Quarterly participant statements. ADP provides quarterly participant account summary statement with customizable messages.



• Plan activity reports. ADP provides your company with summary account statements and annual forfeiture reports.



• Self-service website. Both you and your participating employees can access pertinent account information via the Web.