Flexible Spending Accounts (FSA)

Want to reduce your taxable income and increase your take home pay? Enroll in a Flexible Spending Account (FSA) and start saving money on eligible health care and/or dependent care expenses. The City of Portsmouth offers a Health Care and Dependent Care Flexible Spending Account administered by PayFlex. 

How does an FSA work?
Employees realize a tax savings because the cost of these benefits is deducted before taxes, which increases the amount of your take-home pay.
   •  A portion of your income is deducted on a pre-tax basis from your paycheck, depending on your first month of coverage,
for qualified health care or dependent care expenses.
   •  Health care reimbursement covers qualified out-of-pocket heatlh care expenses
$2,500 maximum annual contribution
You will receive a debit card to use for these qualified expenses
   •  Dependent care reimbursement covers day care and elder care expenses
$5,000 maximum annual contribution
Claims cannot exceed plan-to-date deductions

Health Care Account
A health care FSA allows you to pay many health care expenses in a tax advantaged method. This can be used to pay for eligible expenses for you, your spouse and/or your tax dependents. You also may be reimbursed for medical, dental, or vision care expenses that are not covered under your insurance plan, such as:
  • copayments 
  • coinsurance
  • deductibles
Dependent Care Account
A dependent care FSA also lets you set aside money from your paycheck on a pretax basis. You can then use the FSA to pay for eligible out-of-pocket dependent care expenses for:
  • Your dependent who is under the age of 13 
  • Your spouse or dependent who is incapable of self-care 
Some common eligible expenses include: 
  • Child and adult day care
  • Summer day camps 
  • Preschool
  • Before and after school care 
For employees to enroll in the flexible spending account plan during the annual open enrollment period or if they experience a qualifying status change or life event, please download the PayFlex Heath Care and Dependent Care Enrollment Form. To authorize reimbursement through direct deposit, fill out the PayFlex Direct Deposit Form 

Click here for answers to the most frequently asked questions regarding flexible spending accounts.