Flexible Spending Accounts, or FSAs, create an opportunity for you and your employees to save on taxes.
This type of account authorizes employees and employers to increase the tax benefits from a premium only design. FSAs also allow businesses to offer great health plans, which attract employees and make them want to stay with the company longer.
With this plan, employees can put some of their paycheck aside to pay for health and daycare services before taxes are calculated from their checks. The more your employees put it, the less you will have to pay in payroll taxes. In some states, it even reduces the amount that you have to pay in workers compensation insurance.