Flexible Spending Accounts (FSA)

What is Flexible Spending Accounts (FSA) ?

‘Flexible Spending Accounts’ or FSAs are the kinds of salary accounts in the USA, wherein, an employee can set aside a part of their income for any kind of predefined qualified expenses.

As the deductions are applied to the gross income, it is also tax-efficient. However, whatever amount not used up by the end of the year is forfeited, which is a disadvantage to the employee.

Hence, employees generally plan beforehand and enroll for FSA knowing that there might be some expenditure in the coming months. It helps them save taxes as well as have the extra money when in need.

More HR Terms

Collective Bargaining

What is Collective Bargaining?   ‘Collective Bargaining’ is the term used to define the bargaining between employers and employees to reach a mutually beneficial agreement.

Total Remuneration

What is Total Remuneration?   ‘Total Remuneration’ refers to the monetary benefits provided to an employee by the company excluding non-monetary benefits. Generally speaking, it

Stay Interviews

What is Stay Interviews?   ‘Stay Interviews’ are those interviews which ask the currently active employees in a company to provide feedback on their process,

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