AURA offers employees who work at least 20 hours per week the opportunity to enroll in a Health Care Flexible Spending Account (FSA) or a Dependent Care FSA.
FSAs provide you with an important tax advantage that can help you pay health care and dependent care expenses on a pre-tax basis. By anticipating your family’s health care and dependent care costs for the next year, you can actually lower your taxable income.
Before an employee elects to participate in an FSA or HSA he or she should be aware that while participation in these plans reduces the employee’s taxable income, it may also reduce other benefits. Benefits that are calculated using the employee’s income (for example, social security or retirement benefits) will in turn be reduced. Because FSA and HSA contributions reduce your taxable income, you save money in FICA taxes, as well as federal (and, in some cases, state) income taxes. However, FSA and HSA contributions also lower the earnings that are reported to the Social Security Administration for purposes of calculating your Social Security benefit. Therefore, your future Social Security benefits may be slightly reduced if you participate in an FSA or HSA.
Employees reaching retirement age should speak with their financial advisors for more information regarding retirement planning decisions.For location specific information, visit your base locations homepage: