Flexible Spending Accounts
FSA enrollment occurs each November for the following calendar year.
Using a Flexible Spending Account (FSA) is like getting a discount on everyday health and/or dependent care expenses because you’re paying with tax-free money. There are separate FSAs for healthcare and dependent care.
2020 – 2021 Accounts:
You may enroll in either one or both FSAs in November, during the annual Flexible Spending Account enrollment period for the next calendar year beginning January 1. To enroll, visit Workday. Important: If you are currently enrolled in one of the FSAs, your participation will end on December 31, 2021 unless you re-enroll in November. FSA elections do not carry over to the next year.
We offer two types of FSAs, both administered by WageWorks:
- Tax-free money – Money goes into your FSA tax-free and comes out tax-free when it’s used for eligible expenses.
- Convenient payroll deductions – Contribute to your FSA easily and effortlessly.
- Helpful budgeting tool – Plan for upcoming expenses by setting aside money for each paycheck.
- FSAs Run on a Calendar Year Basis – FSAs have a separate enrollment window each November. At that time, you will be able to re-enroll and continue or change your FSA contributions if you wish to participate in one or both FSAs again.
How Much Could You Save?
Here’s an example. Let’s say Tom decides to set aside $2,000 in an FSA for the year. Normally, on that money, he’d pay $560 in federal income tax, $100 in state income tax, and $153 in FICA tax. So, by contributing that $2,000 to his FSA, he’ll get an $813 tax savings for the year.
|Without the FSA, Tom would pay …||Savings|
|28% in federal income tax||$560|
|5% in state income tax.||$100|
|7.65% in Federal Insurance Contributions Act (FICA) tax||$153|
|His total tax savings for the year with an FSA||$813|
This hypothetical illustration is for educational purposes only. Dollar amounts or savings will vary depending on income, state and city tax rules, and other factors. Please consult a tax, legal, or financial advisor about your own personal situation.