OTHER COMMON FRINGE BENEFITS (3 OF 4)
01.Core Concepts
Flexible Spending Accounts (FSAs) • Employee election to pay for medical/dependent care costs with pre- tax dollars • Salary reductions also exempt from payroll tax • Amounts not spent are forfeited • Entire amount available at beginning of year • No recovery by employer if employee terminates employment • Health care FSA maximum • $3,400 (2026)