Benefits of an FSA
A Flexible Spending Account (FSA) allows employees to contribute money into an account with each paycheck to pay for qualified expenses on a pre-tax basis. Employees can then use these tax-free funds to pay for out-of-pocket medical costs and other eligible expenses! With FSAs, employers experience FICA savings on contributions, plus increase their appeal in attracting and retaining talented employees.
When employees use tax-free dollars to pay for qualified expenses, they realize a 25-30% savings* and an increase in spending power. The company saves too – 7.65% (FICA match) on every dollar employees contribute to the plan. *This amount can vary by state.
What Expenses Can be Reimbursed Using an FSA?
Healthcare FSA: An account option used to pay for out-of-pocket medical care expenses, such as deductibles, prescriptions, check-ups, and more.
Limited FSA: An account option for employees enrolled in an HSA that can be used for qualified dental, vision, and preventative care expenses.
Dependent Care FSA: This account can be used to pay for eligible child and adult care services, such as preschool, before or after school programs, daycare, and more.
Paylocity is revolutionizing the TPA industry with technology that has simply never existed before—creating a truly convenient and unified employee experience. Navigating the complex world of third-party administrative (TPA) benefit services, such as FSAs, HSAs, TMAs, POPs, HRAs, and COBRA have never been easier.
For additional information, please contact our Client Support Team at (833) 423-8891 or firstname.lastname@example.org.
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