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PayslipIQUSA

FSA contribution (Health or Dependent Care) on your paycheck

Pre-tax flexible spending account. Use-it-or-lose-it.

A Health FSA reduces federal income tax and FICA. Most FSAs are use-it-or-lose-it within a plan year (some carryover or grace period). 2025 health FSA limit is $3,300 (verify employer-specific cap).

How it usually appears

Category: pre-tax

Tax interaction

  • Reduces federal taxable wages: Yes
  • Reduces FICA wages: Yes
  • Reduces state taxable wages: Usually yes

Official sources

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