The Health Care and Dependent Care flexible spending accounts (FSAs) are a great way to save money on taxes. Credits and/or pre-tax money from your wages are deposited monthly into a spending account. Deposits to these accounts avoid all Federal, State, Local and Social Security/Medicare taxes. When you incur qualified expenses, you file for reimbursement from the account. Once you are reimbursed, you have paid your expenses with tax-free money.
All staff paid on a monthly basis, whose salary is subject to state and federal taxes, are eligible to participate. You are eligible to enroll when you are hired and become benefit eligible, and during an annual benefits open enrollment period. You can only make a change (or enroll in) a spending account(s) outside of these times if you have a qualifying event.