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During unpaid leave, you can arrange to make fsa contributions directly through your employer, following the same schedule as your regular payroll deductions. Amounts contributed are not subject to federal income tax, social security tax or medicare tax. Here are your three options for when your employees are on leave and you won’t be able to pull the regular payroll contribution because they aren’t receiving their regular paycheck.
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The employee must notify the payroll coordinator and the fsa carrier in order to set up direct payments An employee who chooses to participate in an fsa can contribute up to $3,300 through payroll deductions during the 2025 plan year The employee will be able to submit eligible claims for reimbursement during the unpaid leave of absence
There is no tax benefit to this option.
It’s very common to take a leave of absence from work due to any number of reasons Whether it’s a paid leave or unpaid leave, this page will explain coverage information under a flexible spending account (fsa) or dependent care flexible spending account (dcfsa) during a leave of absence. The amount of the reduction will be equal to the sum of all of the reductions that will be missed while on leave. Remember, when you go on a leave, you must complete a vita flex leave of absence form and turn it in to your employer within 30 days from the first day of your leave.
