What is a Flexible Spending Account?
Flexible spending accounts, commonly know as FSA’s, allow employers and employees to expand the tax-saving benefits of a premium only plan. They give companies the ability to provide top-rated health care benefits, thus increasing employee satisfaction and retention.
How do they work?
Flexible spending accounts allow an employee to set aside a portion of his/her paycheck for health care and/or dependent day care expenses, all before taxes are calculated. This is a great way to save some money when you know you are going to have the expense anyway. For the employer, the more your employees take advantage of this benefit, the less you’ll pay for payroll taxes, including Social Security and Medicare. It’s a WIN | WIN for everyone involved.
Call us today and let’s get your company and employees set up on a FSA!
