What is flexible spending account in SAP PA-BN - Benefits?

SAP Term: flexible spending account

• Component: PA-BN

• Component Name: Benefits

• Description: A benefit plan that allows employees to set aside tax-free dollars for anticipated medical care and dependent care expenses. Flexible spending accounts are available in North America only.

Smart SAP Assistant

• Key Concepts: 
  A Flexible Spending Account (FSA) is a type of employee benefit offered by employers in the United States. It allows employees to set aside a portion of their pre-tax salary to pay for eligible medical and dependent care expenses. The funds are held in an account and are available for use throughout the year. The funds are not taxed, so employees can save money on their taxes. 
  
  How to use it: 
  In SAP, the Flexible Spending Account is managed through the PA-BN Benefits component. Employees can set up their FSA accounts and manage their contributions and expenses through this component. Employees can also view their account balances and track their spending. 
  
  Tips & Tricks: 
  When setting up an FSA account, it is important to remember that the funds are only available for eligible expenses. It is also important to keep track of your spending throughout the year, as any unused funds will be forfeited at the end of the year. 
  
  Related Information: 
  For more information about Flexible Spending Accounts, please visit the IRS website at https://www.irs.gov/taxtopics/tc554.html.