Showing posts from December, 2020

Is a FSA right for your company?

A Flexible Savings Account can be a tremendous help to an employee and a nice addition to a benefits package.  Offered by the employer, an FSA allows employees to set aside pretax dollars through a payroll deduction to pay for specific healthcare expenses, like medications, eyeglasses and copays, just to name a few.  How it works  Each year, the federal government sets a cap on the amount of money an employee can set aside for these eligible expenses for themselves and their eligible dependents. In 2021, that figure is $2,750.   The employer, however, may set a lower annual maximum allowable amount they would allow their employees to set aside. The employee then determines their own annual election; that amount will be broken down by the number of pay cycles the company has over the course of the year and then deducted from those paychecks.  Unlike other tax-advantaged benefits, such as a Health Savings Account, a Flexible Spending Account has no plan requirements and the entire chosen