Flexible Spending Account

As a business owner, you can use an FSA to reduce your social security, Medicare, and unemployment tax liabilities. You’ll also leave employees with more spending money per paycheck, thanks to savings on out-of-pocket expenses like doctor and dentist co-pays, prescriptions, and day-care costs.

How Does a Flexible Spending Account Work?

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.

Paychex FSA Benefits

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

View Minimum Requirements

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