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Create Tax-Saving Opportunities for You and Your Employees
Flexible spending accounts, or FSAs, will allow employers and employees to expand the tax-saving benefits of a premium only plan. They also enable companies to provide superior health care benefits, increasing employee satisfaction, and retention.
Flexible spending accounts allow your employees to set aside a portion of their paychecks for health care and dependent day care expenses before taxes are calculated. The more they take advantage of this benefit, the less you’ll pay for payroll taxes, including Social Security and Medicare. Depending on your state, a flexible spending account program may also reduce the cost of your workers’ compensation insurance.