HR Glossary

Flexible Spending Account(FSA)

Flexible spending account is a type of savings account which allows employees to set aside a portion of their earnings with specific tax advantages into separate spending accounts.

what-is-flexible-spending-account-fsa

Flexible spending account definition (FSA)

Flexible spending account is a type of savings account which allows employees to set aside a portion of their earnings with specific tax advantages into separate spending accounts. This type of account is used for qualified expenses such as medical care or dependent care expenses.

Benefits of FSA

The biggest benefit of flexible spending account is that the portion of the earning set aside is deducted from employee’s earnings before payroll taxes giving the employee lower annual tax liabilities.

The funds must be segregated as per IRS regulations.

See TalentLyft in action

Applicant Tracking, Recruitment Marketing, Sourcing and Talent CRM software are powerful alone, but unstoppable when used together!

Related content

  • Compensation

    Compensation is what companies give to employees or workers for their services towards the company, most often money. Compensation definitionCompensation is what companies give to employees or...

  • Deferred compensation

    Deferred compensation refers to a portion of salary or compensation which is paid to an employee at a later date.Deferred compensation definitionDeferred compensation refers to a...

  • EAP

    Employee assistance program is an employer-sponsored program used to diminish the effects of employees' personal problems in workplace and provide a variety of support arrangements for...

Explore more topics

  • Employee Management

    Employee Management: Discover the essential tools, tips, and processes to build and lead a winning team. Learn how to effectively manage performance, foster collaboration, and create a positive work environment that drives success. Implement best practices to optimize productivity and ensure your team reaches its full potential.

    Learn more

  • Job Advertisement

    Learn how to craft compelling job postings that attract top talent. Discover the best platforms to publish your job ads and effective promotion strategies to reach a larger pool of high-quality candidates. Maximize your job ad's visibility and ensure you get the right candidates for your open roles.

    Learn more

  • Recruitment by Industry

    Tailor your recruitment strategies to fit specific industries. Learn the unique challenges and best practices for hiring in sectors like healthcare, tech, retail, finance, and more. Discover industry-specific approaches to sourcing talent, crafting job descriptions, and optimizing your recruitment efforts for success.

    Learn more

  • Internal Recruitment

    Your organization's most valuable assets are the talents you already have. Maximize the potential of your existing workforce and learn how to use internal recruitment to build a stronger, more agile, and highly skilled team that's ready to tackle the future.

    Learn more

  • Social Recruiting

    The landscape of recruitment is evolving, and social media has become a game-changer in the search for top talent. Social recruiting is not just a trend - it's a strategic approach to finding, engaging, and hiring the right candidates. Learn how to leverage the power social media to scale your recruitment efforts.

    Learn more

  • Recruiting Stats

    Stay informed with the latest recruitment statistics that can help you refine your hiring strategies. Discover key metrics on time-to-hire, candidate sourcing, retention rates, and more. Use these data-driven insights to improve your talent acquisition processes and make better hiring decisions.

    Learn more

Simple and affordable recruitment software

Schedule a Demo Start Free Trial