WageWorks, Inc. provides consumer-directed benefits programs (CDBs) to employees to save money on taxes in the United States. The company administers CDBs, including pre-tax spending accounts, such as health and dependent care flexible spending accounts (FSAs), health savings accounts (HSAs), health reimbursement arrangements (HRAs), and commuter benefit services, including transit and parking programs, wellness programs, Consolidated Omnibus Budget Reconciliation Act (COBRA), and other employee benefits in the United States. As of January 31, 2016, the company had approximately 4.5 million employee participants from approximately 58,000 employer clients. Services HSAs The company administers HSAs for employers that allow employee participants to invest funds to be used for qualified healthcare expenses at any time without federal tax liability or penalty. The funds in the HSAs are exempt from payroll taxes for employers. Both employees and employers could make contributions to an HSA. HSA funds are held by a custodian, which accumulate year-to-year if not spent and are portable if a participant leaves his employer. Its HSA programs are designed to offer employers a choice of third-party custodian, as well as various investment options within each custodial offering that enables employers the opportunity to explore an assortment of funds to offer their employees. FSAs Healthcare The company offers FSAs, which are employer-sponsored CDBs that enable employees to set aside pre-tax dollars to pay for eligible healthcare expenses that are not generally covered by insurance, such as co-pays, deductibles and over-the-counter medical products, as well as vision expenses, orthodontia, medical devices and autism treatments. Employers benefit from payroll tax savings on the pre-tax FSA contributions from the employee. Dependent Care The company also administers FSA programs for dependent care plans. These plans allow employees to set aside pre-tax dollars to pay for eligible dependent care expenses, which typically include child care or day care expenses but might also include expenses incurred from adult and elder care. HRAs The company offers employer-funded HRAs. Under HRAs, employers provide their employees with a specified amount of reimbursement funds that are available to help employees defray their out-of-pocket healthcare expenses, such as deductibles, co-insurance and co-payments. Commuter Programs The company administers pre-tax commuter benefit programs. Employers are permitted to provide employees with commuter benefits including qualified parking, transit passes, vanpooling and bicycle commuting reimbursement. The maximum monthly federal (and sometimes state) tax free exclusion is adjusted for inflation. COBRA The company offers COBRA continuation services to employer clients to meet the employer’s obligation to make available continuation of coverage for participants who are no longer eligible for the employer’s COBRA covered benefits, including medical, dental, vision, HRAs and certain healthcare FSAs. COBRA requires employers to make health coverage available for terminated employees for a period of approximately 36 months post-termination. As part of the company’s COBRA program, it offers a direct billing service where former employee participants pay WageWorks directly versus to their employers for coverage they elect to continue. The company handles the accounting and customer service for these separated employees, as well as interfacing with the carrier regarding the employees’ eligibility. Operations Operation Support Services The company provides operational support services to its clients, including customer support center servicing and claims processing. Its customer support team serviced approximately 5.0 million calls in 2015. The company’s operations support team processes and coordinates activities, delivers healthcare and commuter cards to participants and ensures that prepaid funds and reimbursement payments are accurate. In 2015, its operations team delivered approximately 5.0 million healthcare and commuter prepaid debit cards, and it fulfilled a
wageworks inc (WAGE:New York)
1100 Park Place
San Mateo, CA 94403
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