Also still to be announced is which agencies will absorb the fees envisioned in the FSA program–$4 a month for health care accounts and 1.5 percent of the annual amount designated toward dependent care accounts-and which will require their employees to pay those charges. The Office of Personnel Management is gathering that information. In guidance, OPM told agencies that absorbing the fees is “the right thing to do. You may wish to note that our analysis has shown that even after paying fees, agencies will still accrue savings” because agencies will not have to pay their share of payroll taxes on amounts employees set aside pre-tax into such accounts.
OPM gave examples showing that agencies still would come out ahead even after paying the fees when their employees have FSA accounts. However, OPM said the decision “is up to each individual employing agency” and indicated that some agencies may be operating under laws barring them from using their funds in that way. Those who enroll are required to agree to pay the fees if their agencies don’t absorb them.