With our medical and dependent care Flexible Spending Accounts (FSA), employees can set aside money for eligible medical expenses they know are coming soon or to prepare for their future medical needs on a pre-tax basis. Employees decide how much or how little they want to contribute throughout the year to cover those expenses.
An FSA is a great product for employers because employees are contributing to the plan on a pre-tax basis. Since the funds are not paid to the employee via payroll, this solution helps the employer save 7.65% in FICA taxes. Plus, FSAs can help offset deductible expenses for employees, serving as a strong retention tool.
An FSA is an excellent supplement to MidAmerica’s Health Reimbursement Arrangement (HRA).