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Flexible Spending Accounts

PayMaster can help your employees reduce their payroll taxes by providing a Flexible Spending Account (FSA). Employers will also recognize a similar tax savings as the employer matches the reduced OASDI and Medicare tax.

An FSA allows an employee to set aside a portion of their earnings to pay for qualified expenses as established in the cafeteria plan, most commonly for medical and dependent care expenses with pretax dollars. The employee can then pay for these qualified expenses with the convenience of a debit card on the flexible spending account.

Qualified expenses include:
  • Medical costs that are not reimbursed, including medical deductibles and co-pays
  • Child and dependent-care costs
  • Prescription and certain over-the-counter drugs
  • Un-reimbursed dental expenses
  • Contact lenses, eyeglasses and exams