Overlooked Savings: Healthcare and Dependent Care Flexible Spending Accounts
Flexible Spending Accounts are a money saving benefit that can be easily misunderstood by employees as “just another deduction” from their paycheck. However, the tax savings from using a Flexible Spending Account (FSA) reduces their costs on medical, dental, vision, and child or elder care expenses by allowing them to pay for these products and services using pre-tax dollars. According to Ceridian Benefits Services, participants typically save an average of 30% on their healthcare and dependent care costs.