Flexible Spending Accounts or FSAs help create tax-saving opportunities for both you and your employees. FSAs allow your employees to use a portion of their paycheck to pay for healthcare related costs as well as dependent day care expenses before taxes. The more they place in their FSA, the less you will pay for payroll taxes.
There are different state laws, but a Flexible Spending Account program may also reduce your workers’ compensation insurance.
This type of program enables companies to provide superior health care benefits that fit each employees’ need and budget, which serves to increase employee satisfaction, and retention.