How do I choose the right employer contribution to LPFSAs?
How much you choose to contribute to your employees' LPFSAs is up to you, but here are some things to consider when you're making the decision.
- The amounts you set for each type are the annual amounts you'll contribute to each employee who enrolls in that type, so consider the possibility that all eligible employees enroll when determining how much you're willing to spend.
- You can't change your contributions after the plan starts until the end of the plan year, during renewal.
- Employees will be able to see the amounts you've chosen to contribute for both Limited Purpose and Dependent Care FSAs when they enroll.
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