Flexible Spending Accounts
Flexible spending accounts (FSAs) are powerful tools that help employees save money on eligible medical, dependent care and commuting expenses. Employees set aside money on a pre-tax basis to take care of expenses, which increases their take-home pay while decreasing your payroll taxes:
- Medical FSA: Employees can use tax-free dollars to pay for eligible items like eyeglasses, prescriptions, health plan copayments and deductibles, dental care and more
- Dependent Care FSA: This plan allows working caregivers to pay for care for children under 13 years of age or a disabled and dependent parent or spouse with pre-tax contributions
- Commuting Expenses FSA: With a commuting expense FSA, employees can set aside tax-free dollars to pay for eligible, work-related commuting costs such as mass transit passes and parking fees
Employees benefit by paying for everyday expenses with tax-free dollars, which increases take-home pay. Employers enjoy lower tax liability, higher staff retention and a low-cost plan set-up. Discover more about how PayChoice can help you offer an FSA that will provide savings that can offset the program’s low cost.