Share| Flexible Spending Account (FSA) Leave employees with more spending money per paycheck while they save on out-of-pocket expenses like doctor and dentist co-pays, prescriptions, and day-care costs with a Paychex Flexible Spending Account (FSA). Free White PaperPOPs, FSAs, HSAs and HRAs POPs, FSAs, HSAs and HRAs A Paychex Section 125 plan can help employees pay healthcare costs while expanding your benefit offerings, and helping you save on taxes. Register now and instantly download this free white paper. How it Works FSAs set aside money from each paycheck before payroll taxes are deducted. This gives employees more take-home pay, while you pay less in FICA and FUTA payroll taxes. Learn more. The Paychex FSA Paychex helps you establish and manage an FSA for your business. We process claims daily, and provide the legal documentation, compliance testing calculations, and status reports to keep your employees accounts running smoothly. If you have questions, just call our toll-free support line and our FSA experts will be glad to answer them for you. Paychex also offers: Direct deposit of reimbursement funds into employees' bank accounts Check signing and mailing of reimbursement checks directly to employees' homes Paychex FSA Debit Card that can help increase employee enrollment and utilization Section 125 Plans Also known as cafeteria plans, section 125 plans such as an FSA* or Premium Only Plan (POP) are powerful tax savings tools. Section 125 Plan Comparison POP FSA Pretax premium payments Yes N/A Pretax payment of qualified expenses** not covered by your benefit plans No Yes Reduces employees' FICA, federal, and where applicable, state and local taxes Yes Yes Reduces employers' FICA payroll taxes by effectively lowering employee taxable income Yes Yes Can be integrated with Paychex Payroll for automated contribution deductions and simplified plan administration Yes Yes A powerful tax incentive to help recruit and retain quality employees Yes Yes Easy claim submission via secure website or mail N/A Yes Optional reimbursement methods: Direct deposit Check signing and mailing Paychex FSA Debit Card N/A Yes Dedicated toll-free support line Yes Yes * For applicable state legislation, consult your tax advisor. ** Medical, dental, and dependent care expenses, including co-payments, deductibles, and some over-the-counter medications
