Fsa — Payroll Definition

What is Flexible Spending Account (FSA)?

A health FSA can reimburse qualified medical expenses under an employer cafeteria plan. For plan years beginning in 2026, the employee salary-reduction limit is $3,400. A plan may permit up to $680 to carry over or may offer a grace period, but it is not required to offer either. Dependent-care assistance uses separate rules; for tax year 2026, the annual exclusion is generally up to $7,500, or $3,750 for married filing separately. Always check the specific plan document and eligibility rules.

How to apply this payroll definition

Locate the label beside its current-period amount, taxable-wage basis, and year-to-date total. Compare it with prior genuine statements, benefits materials, the employer's payroll documentation, and the primary source linked on this page. The same abbreviation can carry a different employer-specific meaning.

What the label does not prove

A familiar term or plausible amount does not authenticate a pay statement or confirm identity, employment, wages, deductions, tax compliance, or eligibility. Ask the verified payroll contact about an unknown code. Use current agency instructions or a qualified adviser when a rate, filing, benefit, garnishment, or legal decision depends on the answer.

Browse all payroll definitions or use the pay-statement codes guide.