Flexible Spending Account (FSA)

What is Flexible Spending Account (FSA)?

A tax-exempt financial account designated for certain out-of-pocket health care costs, resulting in payroll tax savings

Why Flexible Spending Account (FSA) Matters

Flexible Spending Account (FSA) plays a key role in an organization’s total compensation strategy. Getting this element right helps attract qualified candidates, retain top performers, and maintain internal pay equity.

HR and payroll teams should regularly benchmark against market data and review calculations to ensure accuracy, fairness, and compliance with applicable wage and hour laws.