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

  • Ban the Box

    Ban the box is the name of an international movement initiated by civil rights group who require employers to remove questions related to the applicant's criminal...

  • Business continuity planning

    Business continuity planning is the management process of creating systems of prevention and recovery.Business continuity planning definitionBusiness continuity planning (BCP) is a strategic process undertaken by...

  • Carve-Out

    Carve out is a term which refers to the elimination of coverage of a specific category of benefit services, most commonly medical services which are not...

  • Distance Learning

    Distance learning is a formalized teaching and learning educational program where an individual uses instructions via video, audio tapes or computers instead of attending a class...

Explore more topics

  • HR Tech Trends

    HR Tech Trends – Stay ahead of the curve with the latest HR technology trends. Discover how innovations like AI, automation, and data analytics are transforming talent acquisition, employee management, and workplace productivity. Embrace these cutting-edge tools to optimize your HR processes and drive organizational success.

    Learn more

  • Diversity Equity and Inclusion (DEI)

    Diversity, equity, and inclusion (DEI) have become key focuses in building a thriving workplace culture—and for good reason. In our DEI Hub, we provide strategies, insights, and best practices to help HR professionals, business leaders, and change-makers champion a more inclusive and equitable workforce. Join us in fostering diversity and empowering employees by exploring a wide range of DEI topics, from inclusive hiring practices to creating a workplace where all voices are heard and valued.

    Learn more

  • Skill Assessments

    Enhance your hiring process with skill assessments. Evaluate candidates' abilities and competencies through tailored assessments designed to measure job-specific skills. Learn how to incorporate skill assessments to identify top talent, ensure the right fit, and make data-driven hiring decisions that improve performance and reduce turnover.

    Learn more

  • 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

  • SMBs HR

    Unlock effective HR strategies tailored for small and medium-sized businesses (SMBs). Learn how to manage recruitment, employee engagement, compliance, and talent development on a budget. Discover tools and best practices to streamline your HR processes and build a strong, thriving workforce in your growing business.

    Learn more

  • Turnover and Retention

    Reduce turnover and improve retention with proven strategies. Learn how to identify the causes of employee turnover, implement retention programs, and create a positive workplace culture that fosters loyalty. By focusing on employee engagement and satisfaction, you can retain top talent and strengthen your organization’s long-term success.

    Learn more

Simple and affordable recruitment software

Schedule a Demo Start Free Trial