Flexible Spending Account

Flexible Spending Account (FSA) is established by an employer to allow employees to set aside money from each paycheck on a pre-tax basis. The money that is withheld during the year can be reimbursed on a tax-free basis to pay for qualifying medical expenses.

By sponsoring a Flexible Spending Account, employers provide another means for employees to pay for medical costs through an employee funded benefit plan.

Even though this is considered an employer provided plan, the employee elects to make a pre-tax contribution for medical expenses that reduces the employer’s share of FICA and FUTA taxes.

BASE® offers employers an option of utilizing a debit card to help simplify the reimbursement process, because approved expenses are automatically deducted without the hassle of claim forms or reimbursement checks. This has proven to increase participation in the plan and when the number of participants increases, so does your savings. Click here to learn more.

Since these funds are transferred from the employee’s wages on a pre-tax basis, employees save federal, state, Social Security and Medicare taxes. By setting aside these dollars pre-tax, employees are able to increase their take-home pay.

Having access to pay for qualifying medical expenses with the swipe of a card allows instant access to funds and freedom from nearly all claim forms and reimbursement checks.

Continue to FSA: Eligibility