The City of New York offers its employees a Flexible Spending Accounts (FSA) Program, which is allowable under Internal Revenue Code (IRC) Section 125. The Program allows City employees to deposit a portion of their pre-tax income into accounts maintained for certain health and dependent care expenses. Employees covered by a non-city group health plan can enroll in the MSC program and waive city health benefits to receive an incentive payment, up to $1,000 per year.
FSA Overview
Health Care Flexible Spending Account (HCFSA) Program With HCFSA, City employees can pay for eligible out-of-pocket medical, dental, vision, and hearing expenses on a pre-tax basis, with deductions taken directly from salary. These deductions reduce an employee's gross income on his/her Form W-2 for federal and Social Security tax purposes. Learn more See the FAQ
Dependent Care Assistance Program (DeCAP) DeCAP allows City employees to pay for eligible dependent care expenses on a pre-tax basis, with deductions taken directly from paychecks. These deductions reduce an employee's gross income on his/her Form W-2 for federal and Social Security tax purposes. Learn more See the FAQ
Medical Spending Conversion (MSC) Health Benefits Buy-Out Waiver Program The Health Benefits Buy-Out Waiver Program allows eligible employees who can obtain non-City group health benefits to waive their New York City health benefits in return for an annual cash incentive payment.
Learn more See the FAQ
Medical Spending Conversion (MSC) Premium Conversion Program The Premium Conversion Program enables eligible employees to pay for their health plan premium deductions on a pre-tax basis, thereby reducing their gross income for tax purposes. Learn more See the FAQ
Employee Assistance Programs (EAPs) EAPs are staffed by professional counselors who can help employees and their eligible dependents handle problems in areas such as stress, alcoholism, drug abuse, mental health, and family difficulties.
Flexible Spending Accounts Program
FSA Overview
