Reasons to Enroll
What Is The Flex Spending Account?
The Flex Spending Account (FSA) is a negotiated benefit for state employees. There are three parts to the FSA—the Dependent Care Advantage Account (DCAA), the Health Care Spending Account (HCSA), and the Adoption Advantage Account. They are types of flexible spending accounts, administered in compliance with Sections 125 and 129 of the Internal Revenue Code, that give you a way to pay for your dependent care, health care, or adoption expenses with pre-tax dollars. Enrollment in the FSA is voluntary— you decide how much to have taken out of your paycheck and put into your accounts.
Why Should I Enroll?
If you are paying for dependent care expenses in order to work, have medical expenses that are not covered by your health insurance plan, or are planning to finalize an adoption, you are paying for those expenses with dollars that have already been taxed. By enrolling in the FSA, you will pay for your dependent care or health care expenses with whole dollars—before federal, state, and social security taxes are taken from your salary. You will also save on your adoption expenses because you will pay lower federal and state taxes due to your pre-tax contributions (where applicable).
Adoption Advantage Account
Eligible employees can now enroll in the Flexible Spending Account for expenses related to the adoption of an eligible child.
Pre-tax payroll deductions contributed to the Adoption Advantage Account can help pay for a qualified adoption. Although you won’t save on FICA you can save on federal and state taxes (where applicable) by having up to $14,080 withheld from your paycheck pre-tax.
More information about the Adoption Advantage FSA is available at: https://www.wageworks.com/NYS-adoption-advantage/.