What is a Flexible Spending Account (FSA)?
A Flexible Spending Account (FSA) is part of the benefit plan offered to you by your employer and allows you to use tax-free dollars to pay for certain medical and/or dependent care expenses. There are two types of FSAs: a Medical FSA (for eligible medical services provided to you, your spouse or your dependent) and a Dependent Care FSA (for eligible dependent care expenses).
A Flexible Spending Account (FSA) is a pre-tax benefit that allows employees to deduct money pre-tax out of each paycheck to help pay for medical expenses such as co-pays, dental visits, eyeglasses, and over the counter drugs. The FSA also allows daycare and individual health premium expenses to be pre-tax! Why we are different than the rest! • Online Account Look-up 24 hours a day • Claims Processed Daily • Online Claim submission • Toll-free fax claim submission • Recur payments for those claims that are consistent each week or month • Debit Card makes filing claims a “swipe” • Live Chat • Flexpert for the best in compliance • Newsletter • 200 plus years of experience • Online forms and online submission • Educational materials for all types of learning styles • Very Competitive Pricing For more information on our Flexible Spending Account (FSA) Plans, please visit our Generate a Proposal page.
Authorized by the Internal Revenue Service (IRS), a Flexible Spending Account (FSA) is a tax advantaged way to pay for certain medical and/or dependent care expenses. This added benefits allows you to pay for these expenses using pre-tax dollars, thus lowering your taxable income which results in a higher take home pay. There are two types of FSAs. First, the Medical Care FSA helps you pay for medically necessary expenses not covered or only partially covered by your health, dental or vision insurance. Second, the Dependent Care FSA helps you pay for certain dependent care expenses such as daycare for a child or an elderly adult. You may elect to participate in one or both of these accounts.
Flexible Spending Accounts are Section 125 Cafeteria Plans also known as FSAs. Flexible Spending Accounts are a simple and convenient solution for paying out of pocket health and dependent care expenses with pre-tax dollars. These accounts can be funded by the employee, employer or both. Flexible Spending Accounts provide tax savings for both the employer and the employee. Employers save on FICA and FUTA taxes and employees will increase their take home pay and save on taxes. This is a win – win situation for employers and employees. There is a FSA Debit Card available as an optional feature. Employees can use the card to pay for eligible expenses. Flexible Spending Accounts save your company money and provide great benefits for your employees.
A flexible spending account allows you to reimburse yourself for eligible Health Care and Dependent Care expenses – tax free! By participating in these accounts, you do not pay federal, state, city, and Social Security taxes on the money you contribute. Participation is voluntary and employees must sign up during open enrollment.
