Flexible Spending Accounts: Maximize Tax Savings and Employee Satisfaction with FSAs

ARTICLE | December 17, 2024

Authored by Vasquez + Company

Flexible Spending Accounts (FSAs) can be a valuable addition to your nonprofit’s employee benefits package. The article "What FSAs Can Offer Staffers - and Your Nonprofit Organization" outlines the tax benefits, account types, and flexible options these plans provide for both employers and employees.

Key Points:

• Tax Advantages: FSAs reduce taxable income for employees and lower payroll tax obligations for employers, offering significant tax savings for both parties.
• Two FSA Types:
  • Health FSAs cover qualified medical expenses for employees and dependents.
  • Dependent Care FSAs assist with child and elder care expenses.
• Flexible Options: Plans may include grace periods or fund carryovers, giving participants more time to use their funds without forfeiture.
• Recruitment & Retention: FSAs enhance benefits packages, making nonprofits more competitive in attracting and retaining employees.

Explore how FSAs can provide financial benefits and strengthen employee satisfaction. Read the full article here for more insights.

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