Once employees have enrolled and set an annual election amount, that amount will be automatically deducted from their paycheck in equal increments throughout the year before they pay federal, state and FICA taxes on the designated amount.
When an employee is ready to use the money in his/her FSA for a qualified medical expense, he/she will just swipe their Surency Flex Benefits Card.
A Flexible Spending Account (FSA) is a plan designed to help employees manage the rising costs of health care by allowing them to set aside money to pay for out-of-pocket medical expenses. You can think of it as a personal account just for health care expenses.
Funds are set aside on a pre-tax basis — this means as long as the money is used for qualified medical expenses, the employee won’t pay income taxes on it.
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