FSA Administration

Flexible Spending Accounts

Employers often choose to implement Flexible Spending Accounts
(FSAs) to help employees save substantial tax dollars and for their
own tax-saving benefits as well. Although the savings vary,
employers may:

  • Realize FICA and FUTA savings with salary reduction
  • Save under state unemployment insurance (SUI) and workers’
    compensation laws
  • Increase employee awareness of benefit costs
  • Contain health care costs

In addition, these plans allow employees to:

  • Pay for eligible expenses with pre-tax dollars
  • Lower taxes, increasing take-home pay

Health FSA

The most common type of FSA is used to pay for zmedical and dental
expenses not paid for by insurance (copayments, deductibles,
prescriptions, etc). Funds set aside are easily accessible by paying
for FSA-eligible expenses with a Debit Card at the point of sale.

Dependent Care FSA

FSAs can also be established to pay for certain expenses to care for
dependents claimed on an employee’s federal tax return.
Employees can use tax-free funds to pay for preschool, summer day
camp, before- and after-school programs, and daycare for children
or elderly dependents.