Flexible Spending Accounts

The Health Care and Dependent Care Flexible Spending Account, or FSA’s, are some of the most useful benefits, because they save your employees at least 30% on out-of-pocket medical and dependent care expenses. Employees can set aside tax-free dollars in their FSA to pay for medical and dependent care expenses that are not covered by insurance.  Your employees can use their FSA’s for themselves, their spouses, or any dependent children.

With a Health Care or Dependent Care FSA your employees lower their taxable income, meaning they pay fewer taxes and increase their take-home pay. This in turn saves you, the employer, money on FICA taxes. For example a community college that recently transitioned to a FSA with Pierce Group Benefits saw a total employee tax savings of $66,398.54 and in turn, a total employer FICA savings of $17,131.50.