Employees Underutilizing FSAs

September 19, 2011 (PLANSPONSOR.com) - An upcoming $2,500 limit on the contribution amount for medical Flexible Spending Accounts likely won't impact many Americans, according to recent results from the "Getting Paid In America" survey.

The survey conducted by the American Payroll Association (APA) showed that only 12% of employees contribute $2,500 or more to their company’s FSA. Thirty-nine percent responded they contributed to an FSA but less than $2,500. Forty-six percent didn’t participate in an FSA at all.   

“While health care costs are a big concern for employees and their families, the survey results clearly show they aren’t taking full advantage of FSA plans,” said Dan Maddux, Executive Director of the American Payroll Association, in a press release. “Employers should encourage employees to take advantage of these and other pre-tax, voluntary payroll deductions to ease the burden of these anticipated expenses.”   

The “Getting Paid In America” survey coincides with APA’s annual public awareness campaign, National Payroll Week (NPW), held annually during the week of Labor Day. More than 29,000 employees responded to the survey, providing insight into how employees are paid in America.   

For complete results, visit http://www.nationalpayrollweek.com.