Flexible Spending Accounts (FSA)
Flexible Spending Accounts (FSA)
Helping Employees Save on Healthcare Costs
Flexible Spending Accounts (FSAs) allow employees to set aside pre-tax dollars to pay for qualified healthcare expenses. For employers, FSAs are a powerful tool to increase benefits value without dramatically increasing costs.
Flexible Spending Accounts (FSAs) allow employees to set aside pre-tax dollars to pay for qualified healthcare expenses. For employers, FSAs are a powerful tool to increase benefits value without dramatically increasing costs.
FSAs are commonly used for:
Medical copays and deductibles
Prescription medications
Dental and vision expenses
Certain over-the-counter health items
Because contributions are made with pre-tax income, employees can reduce their taxable income and save money on healthcare expenses.
Benefits for Employers
FSAs are not only beneficial for employees—they also reduce employer payroll taxes.
Employers who offer FSAs typically see:
Increased employee satisfaction
Lower payroll tax liability
More competitive benefits packages
Key Rules Employers Should Know
FSAs are governed by IRS Section 125 cafeteria plan rules
Employees must elect contributions during open enrollment
Most FSAs follow the “use-it-or-lose-it” rule unless rollover provisions are adopted
How Stearns HR Helps
Stearns HR helps employers implement and administer compliant FSA programs by providing:
Plan design consultation
IRS-compliant documentation
Employee education resources
Administrative and claims processing support
A properly designed FSA program can transform an ordinary benefits package into a strategic recruiting and retention tool.
Talk to an HR Expert
(248) 720-5755
Open 8 AM - 4 PM EST
ABOUT STEARNS HR
RESOURCES
SERVICES
Stearns HR | About | Services | ICHRA Reframe
© 2025 Stearns HR, Sterling Heights, Michigan — Making small businesses mighty.
ABOUT STEARNS HR
RESOURCES
SERVICES
Talk to an HR Expert
(248) 720-5755
Open 8 AM - 4 PM EST
Stearns HR | About | Services | ICHRA Reframe
© 2025 Stearns HR, Sterling Heights, Michigan — Making small businesses mighty.