Employer FSA Savings Calculator

Estimate how enrollment and average contributions in Health Care and Dependent Care Flexible Spending Accounts are likely to grow over time.

Input

Initial participation % in Health Care FSA ?

Share of eligible employees currently enrolled in the Health Care FSA.

Average annual employee Health Care FSA contribution ?

Typical yearly amount an enrolled employee contributes to the Health Care FSA.

Initial participation % in Dependent Care FSA ?

Share of eligible employees currently enrolled in the Dependent Care FSA.

Average annual employee Dependent Care contribution ?

Typical yearly amount an enrolled employee contributes to the Dependent Care FSA.

Number of benefit-eligible employees ?

Total headcount eligible to participate in the FSA plans.

Assumptions

Advanced options 4

Annual participation increase in Health Care FSA ?

Expected yearly growth in the share of employees enrolling in the Health Care FSA.

Annual participation increase in Dependent Care FSA ?

Expected yearly growth in the share of employees enrolling in the Dependent Care FSA.

% employees earning < Social Security wage base ?

Portion of employees whose wages fall below the annual Social Security wage base.

% employees earning > Social Security wage base ?

Portion of employees whose wages exceed the annual Social Security wage base.

Enter your values and select Calculate.

The figures above show the employer side of Flexible Spending Accounts: the payroll tax savings your organization can expect from employees setting aside pre-tax dollars for health and dependent care expenses. Year 1 total savings reflects your starting participation rates and average contribution levels; Year 2 shows what happens if participation grows as assumed under the annual increase rates you set. There is no single right figure here, since it depends heavily on how many employees actually enroll and how much they choose to contribute.

The two inputs that move this result most are the initial participation rates for each FSA and the average contribution employees are expected to set aside. A higher average Health Care FSA contribution has an outsized effect because it is multiplied across every participating employee. The split between employees earning above and below the Social Security wage base also matters, since employer FICA savings differ for wages above that threshold.

This model does not account for administrative costs of running the FSA program, employee turnover, contribution limit changes, or the possibility that actual participation deviates from your assumed growth rate. It is a projection built from the inputs you provide, not a guarantee of what your organization will save.

Revisit this calculation once participation numbers come in from open enrollment, when the Social Security wage base is updated, or when your employee headcount changes meaningfully. Even a rough estimate like this is a useful starting point for weighing the administrative cost of an FSA program against its expected savings.

This information may help you analyze your financial needs. It is based on information and assumptions provided by you regarding your goals, expectations and financial situation. The calculations do not infer that the company assumes any fiduciary duties. The calculations provided should not be construed as financial, legal or tax advice. In addition, such information should not be relied upon as the only source of information. This information is supplied from sources we believe to be reliable but we cannot guarantee its accuracy. Hypothetical illustrations may provide historical or current performance information. Past performance does not guarantee nor indicate future results.