Flexible Spending Accounts (Cafeteria Plan)
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Allows employees to re-direct a portion of their salary
into an account banked for that employee on a pre-tax
basis. Employees are reimbursed from that account for
qualifying expenses which include unreimbursed medical
expenses (deductibles, co-insurance, dental, vision etc.)
and dependent care expenses. Employees net take-home
pay increases and employers pay reduced FICA and State income taxes on
the aggregate amount re-directed. |