Flexible Spending Account (FSA)

Learn about Flexible Spending Account (FSA) and more with Workstream and improve your hiring vocabulary. Workstream helps companies hire better, faster - everyday.
Schedule a Demo Try Workstream for Free

What is a Flexible Spending Account (FSA)? 

A Flexible Spending Account (FSA) refers to a type of savings account that can be set up by an employer for employees. Once a flexible spending account is established, an employee can contribute a certain portion of their earnings to it. Employers are also allowed to make contributions to an FSA. The funds of a flexible spending account can be used to reimburse employees for different types of medical and dental services. Additionally, an FSA can also be used to reimburse employees for eligible care services for young children or elderly care. 

How does a Dependent Care Flexible Spending Account (FSA) work?

In a flexible spending account, participants authorize a specific amount of money to be withheld from each pay period’s paycheck. The money withheld shall then go to the flexible spending account or FSA. The contributions to an FSA are taken from an individual’s earnings before taxes thereby decreasing the taxable income. 

The Internal Revenue Service (IRS) sets the limit to how much can be contributed to an FSA for the year: 

When filing for reimbursement, the employee must submit corresponding proof of payment and receipts. The expenses are reimbursed to the employee using the funds from the flexible spending account.

It is important to note that the money in an FSA must generally be used by the end of the calendar year. The employee has to use the funds within a specific period. Otherwise, the employee will lose the contribution and they cannot be returned through cash. 

However, employers can offer a grace period for an employee’s health FSA. The grace period is usually up to two and a half months. Another option can be to roll over up to a maximum of $550 of unused funds per year. While these two options are not required, only one option may be offered by the employer.

Try out Workstream to hire employees for
your business

A revolutionary hiring process for Hourly positions

A revolutionary hiring process for Hourly positions Hiring hourly staff in San Francisco can be a tough job. Workstream can help accelerate the process by letting you post on job boards like Indeed within seconds.


1-Click Job Posting

No more tedious copy and pasting. We integrate with all the top job boards. All applicants funnel into one intuitive dashboard.

Text-to-Apply Posters

Print out your unique QR code and text message number. Applicants scan/text to see all open positions and apply right away.

Automated & 2-Way SMS

Engage with applicants via text. Include links to screening questions, forms, and more. Use 2-way text to answer questions.

Endless Integrations

Connect Workstream to your calendar so applicants can schedule interviews. Streamline onboarding with background check & HR integrations.

Candidate Tracking & Scoring

View all your applicants and employees in one place. Make notes on their progress. Access their docs anytime from anywhere.

Customizable Templates

We provide templates for everything from job postings to offer letters. Send links to docs and tax forms via text message so new hires sign digital copies.

What other owners
think about hiring through Workstream

"The flexibility and adaptability of their platform is ideal built for our small business. Speaking from experience, I can say that Workstream's dedication to customer support, client support and sincere appreciation and utilization of feedback is exceptional. Their team consistently demonstrates genuine care for our business needs. The accessibility we enjoy to their content creators and program designers is exactly what our small business needs. At no point in our interactions do I for a moment feel as though we are not their most valued client. At the conclusion of every conversation with their team, I feel better informed and more capable of using their platform to its fullest."


DeliverThat


Currently hiring on Workstream for:

Recruiting Specialist

Sample Driver Listing

zzzzzzzzzz

"So great to work with, accommodating and open to meeting the customer with what they need. "


Equator Coffees


Currently hiring on Workstream for:

Prep Cook

Barista

Shift Lead

"If used correctly, it is a great tool!"


Crossno Corp (FedEx)


Currently hiring on Workstream for:

FedEx Ground Delivery Driver

FedEx Delivery Driver

Linehaul CDL Driver