How are FSA contributions deducted?

Employee FSAs are funded through employee deductions and company contributions. Actual deductions per employee will vary based on start dates, plan definition, and contributions. Here is a list of things that impact FSA deduction amounts.

  • Employee FSA start date

  • Employee contribution amount

  • Company plan year

  • Company pay frequency

  • Pay periods left in the company plan year

Example

If an employee starts on December 1st and the plan year ends on December 31st, their deduction amount will be based on their desired contribution amount and the number of pay periods they have left to contribute until the end of the plan.

Employee Start Date

12/1

Plan Year

1/1 - 12/31

Total Desired Contribution Amount

$2,550.00

Pay Frequency

Semi-monthly

Pay Periods Left to Contribute

2

Deduction Amount per Pay Period

$1,275.00

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