FSA -- Advantages for Employers
Flexible Spending Accounts (FSA) offer your employees pre-tax savings, and they also allow employers to:
- Save on FICA tax on every dollar your employees elect to contribute to their FSA accounts.
- Increase employees take-home pay by allowing them to pre-tax health plan contributions, qualified medical expenses and daycare expenses.
- Reduce the impact of changing health plan coverage or cost on employees’ take-home pay.
Some expenses eligible for FSA spending include:
- Health Insurance Premiums
- Health Care Expenses such as deductibles, copays, coinsurance, and other items.
- Dependent Care Services, including child and adult daycare.
By using pre-tax dollars to pay for eligible healthcare and dependent care expenses, an FSA gives your employee an immediate discount on these expenses that equals the taxes they would have otherwise paid on that money.
Contact us to learn more about how FSAs can save you and your employees money.