HSA Employer Contribution Calculator
Calculate employer HSA contributions per employee and total annual cost. Model different contribution levels for individual and family HDHP enrollees.
FSA Max Benefit Calculator
Calculate healthcare FSA and dependent care FSA maximum benefits, employee tax savings, and employer FICA savings from flexible spending account programs.
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Total Tax Savings⧉
$987.53
Federal $627.00 + State $142.50 + FICA $218.03
Effective Cost⧉
$1,862.47
You pay $2,850.00 but save $987.53 in taxes
Utilization⧉
89.6%
$3,000.00 projected vs $3,350.00 available
Forfeit Risk⧉
$350.00
Unspent funds you may lose at plan year end
Per-Paycheck (Bi-Weekly)⧉
$109.62
Semi-monthly: $118.75 | Monthly: $237.50
IRS Maximum⧉
$3,300.00
Healthcare FSA limit for plan year
Projected Spend: $3,000.00Available: $3,350.00
Monthly Spending Projection
| Month | Spent | Running Total | Remaining |
|---|---|---|---|
| Month 1 | $250.00 | $250.00 | $3,100.00 |
| Month 2 | $250.00 | $500.00 | $2,850.00 |
| Month 3 | $250.00 | $750.00 | $2,600.00 |
| Month 4 | $250.00 | $1,000.00 | $2,350.00 |
| Month 5 | $250.00 | $1,250.00 | $2,100.00 |
| Month 6 | $250.00 | $1,500.00 | $1,850.00 |
| Month 7 | $250.00 | $1,750.00 | $1,600.00 |
| Month 8 | $250.00 | $2,000.00 | $1,350.00 |
| Month 9 | $250.00 | $2,250.00 | $1,100.00 |
| Month 10 | $250.00 | $2,500.00 | $850.00 |
| Month 11 | $250.00 | $2,750.00 | $600.00 |
| Month 12 | $250.00 | $3,000.00 | $350.00 |
FSA Type Comparison
| FSA Type | Max Election | Eligible Expenses | Rollover | HSA Compatible |
|---|---|---|---|---|
| Healthcare FSA | $3,300.00 | Medical, dental, vision, Rx | Up to $640 | No |
| Dependent Care FSA | $5,000.00 | Childcare, eldercare | None (use-or-lose) | N/A |
| Limited Purpose FSA | $3,300.00 | Dental & vision only | Up to $640 | Yes |
Planning notes, formulas, and examples
About the FSA Max Benefit Calculator
Flexible Spending Accounts (FSAs) let employees set aside pre-tax dollars for qualified medical or dependent care expenses. For 2026, the healthcare FSA limit is $3,200 and the dependent care FSA limit is $5,000 ($2,500 if married filing separately). While FSAs are primarily employee-funded, they create real savings for employers through reduced FICA taxes.
This calculator helps HR professionals estimate the combined tax savings from FSA programs and model the maximum benefit employees can receive. For every dollar an employee contributes to an FSA, the employer saves 7.65% in FICA taxes, and the employee saves their marginal income tax rate plus 7.65% in FICA.
FSAs are a zero-cost or even cost-positive benefit for many employers because the FICA savings often exceed administrative fees. Understanding these dynamics helps justify FSA programs to finance teams and communicate their value to employees.
When This Page Helps
FSAs provide a meaningful tax benefit to employees while generating FICA savings for employers. This calculator helps you quantify both sides of the value equation, making it easier to promote FSA enrollment and justify the administrative cost of offering the program.
How to Use the Inputs
- Enter the number of employees participating in the healthcare FSA.
- Enter the average healthcare FSA contribution per participant.
- Enter the number of employees participating in the dependent care FSA.
- Enter the average dependent care FSA contribution per participant.
- Review total contributions, employer FICA savings, and employee tax savings estimates.
Formula used
Total FSA Contributions = (Health FSA Participants × Avg Health Contribution) + (DC FSA Participants × Avg DC Contribution)
Employer FICA Savings = Total FSA Contributions × 0.0765
Employee Tax Savings = Total FSA Contributions × Avg Marginal Tax RateExample Calculation
Result: $7,650 employer FICA savings
With 30 healthcare FSA participants contributing an average of $2,000 ($60,000 total) and 10 dependent care FSA participants contributing $4,000 ($40,000), total FSA contributions are $100,000. Employer FICA savings at 7.65% amount to $7,650. Employees save an additional $25,000–$35,000 collectively in income and payroll taxes.
Tips & Best Practices
- Healthcare FSA max for 2026 is $3,200; dependent care max is $5,000.
- Remind employees that healthcare FSA funds generally follow use-it-or-lose-it rules.
- Some plans offer a $640 carryover or 2.5-month grace period — promote this to boost enrollment.
- Employer FICA savings often exceed the cost of administering the FSA program.
- Run enrollment campaigns during open enrollment to maximize participation rates.
- Dependent care FSA is especially valuable for dual-income families with young children.
Flexible Spending Accounts: A Win-Win Benefit
FSAs are among the few benefits that save money for both employers and employees simultaneously. The pre-tax nature of FSA contributions reduces the employer's FICA obligation while giving employees significant income tax savings on medical and dependent care expenses.
Maximizing Participation
Most eligible employees under-enroll in FSAs due to the fear of forfeiting unused funds. Education campaigns that explain the carryover provision and help employees estimate their annual out-of-pocket costs can dramatically increase participation and savings.
Comparing FSA and HSA
While HSAs offer more flexibility (rollover, portability, investment), they require HDHP enrollment. FSAs work with any health plan and are ideal for employees who prefer lower-deductible coverage. Many employers offer both options to accommodate different employee needs.
Sources & Methodology
Last updated:
Frequently Asked Questions
The IRS healthcare FSA contribution limit for 2026 is $3,200 per employee. This is the maximum an employee can elect for qualified medical, dental, and vision expenses.
The dependent care FSA limit is $5,000 per household ($2,500 if married filing separately). This covers daycare, after-school programs, and elder care for qualifying dependents.
Yes. Employers save 7.65% in FICA taxes on every dollar employees contribute to FSAs because FSA contributions reduce taxable wages. For a company with $200,000 in total FSA contributions, that's $15,300 in annual FICA savings.
Under traditional rules, unused funds are forfeited at the end of the plan year. However, employers may offer either a $640 carryover provision or a 2.5-month grace period to use remaining funds.
Employees enrolled in an HSA-eligible HDHP can only have a limited-purpose FSA (for dental and vision expenses only), not a general healthcare FSA. Dependent care FSAs are not affected by HSA eligibility.
Employees save their marginal federal and state income tax rate plus 7.65% FICA on every dollar contributed. For an employee in the 22% federal bracket, that's roughly 35–40% tax savings on FSA contributions.
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