Deductions for Flex Benefits such as 401(k), FSA, HSA, and Commuter Benefits are determined solely by the monthly contribution amounts elected by employees. The single exception is HRAs, which are only funded by employer contributions.
- For most Flex Benefits types, company contributions are not mandatory. Employees choose their monthly contributions, and the monthly deduction amounts are equal to the monthly contribution.
- If a company chooses to contribute, the employee deduction stays the same, but the funds available to the employee increase.