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A key element of an HRM managing benefits is possess the intricacies of each benefit and ability to explain them to an employee or workforce.  In Chapter Eleven of the textbook, many of you will read for the first time about a discretionary benefit titled, Flexible Spending Account (FSA). 

In December of 2013, The Employee Benefit Research Institute (ERBI) found enrollment in a Health Reimbursement Arrangement (HRA) to be used in calendar year 2014 declined significantly while enrollment in an FSA increased almost 2%.

For this week’s discussion forum, I want you to watch the following video and answer the three questions on FSAs:

Video link:  http://www.youtube.com/watch?v=IQQgJof_yeY

1) Based upon the readings and the video, what are two major factors an employee must consider before enrolling?

2) In early December of 2013, the US Treasury and the IRS issued a formal notice to employers that employees may rollover up to $500 of the unused funds at the end of the 2013 plan year (Miller, 2013). With this significant change, how will this impact both the employee and employer that offers FSAs to their workforce?

3) As an HRM, would you recommend an FSA to your employees? Why or why not?

Reference

Martocchio, Employee Benefits, 4th Edition

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