Flexible Spending Account
A flexible spending account (FSA) helps employees pay for qualified expenses not covered by your benefit plans. As a pretax benefit, it's also a powerful savings tool. Participants designate a portion of their pretax salary to be deposited into the plan, effectively reducing their taxable income along with your social security (FICA) payroll tax liability.*
An FSA can be used to pay for medical, dental, and dependent care expenses, including co-payments, deductibles, and even some over-the-counter medications.
Note: Effective January 1, 2011, OTC medicines and drugs (other than insulin) are no longer eligible for reimbursement under a medical FSA unless prescribed by a medical practitioner.
We can integrate your FSA with Paychex payroll to automate your employees' pretax deductions.
Paychex helps you establish and administer an FSA for your business. We process claims daily, and provide the legal documentation, compliance testing, and status reports to keep your employees' accounts running smoothly.
Optional services include:
- Direct deposit of reimbursement funds into employees' bank accounts.
- Check signing and mailing of reimbursement checks directly to employees' homes.
- A Paychex FSA Debit Card that can help increase employee enrollment and utilization.
Participants can submit expense claims through our secure website, fax, or by mail, and have reimbursements made directly from their accounts. We also provide toll-free FSA support.
Our FSA plans include a POP. This plan allows participants to pay their health plan premiums on a pretax basis, while reducing your payroll taxes. Learn more.
For more about Paychex FSAs, please view our demonstration.

Health Insurance
Paychex Insurance Agency can help you select an appropriate health insurance plan for your company's needs. Once your plan is in place, we help simplify ongoing administration by integrating the plan with your Paychex payroll information.
Learn More
Health Care Reform Web Seminar
"Health Care Reform — What Employers Need to Know"
Learn details about the new health care reform law and find out what actions you need to take.
Learn More
Section 125 White Paper
"POPs, FSAs, HSAs, and HRAs: Understanding Your Options When Helping Employees Pay for Health Care"
Download our FREE white paper for information on a number of employer-provided benefits to help employees cover health care expenses.
Learn more.
For more information about our products and services, please contact a Paychex representative at 800-322-7292, Monday through Friday from 8:00 a.m. to 8:00 p.m. ET. Or, complete our online form for a no-obligation quote.
* For applicable state legislation, consult your tax advisor.
Notify Me of New White Papers
Printable Version
Email an Associate