FSA Deduction Limits

FSA Limits will now be hardcoded in Namely Payroll preventing overcontribution.

OVERVIEW

We've added hard-coded deduction limits to Federal Flexible Spending Account (FSA) deduction types in Namely Payroll. Starting in 2022, FSA limits are automatically applied to your deductions in Namely Payroll, eliminating the need to manually configure limits for employees and ensuring paychecks never go over federal caps.

If you have already gone through Open Enrollment for 2022, there will be no changes to the benefit plan configuration as limits have already been applied. 

LIMITS

Health FSA

Health FSA will be capped at the following limits for 2022:

  • Employee: $2,850

  • Employer: $2,850

The total limit will only be applied if both the employee and employer maximum limits are contributed. If the employee is not contributing the maximum amount, you will need to manually enter the employer limit on the front end to ensure the $2,850 total limit is not exceeded. 


Dependent Care

Dependent Care will be capped at the following limits for 2022:

  • Employee: $5,000

  • Employer: $5,000

  • Married and filing separate: $2,500. This limit will need to manually enter the limit on the front end.


Adoption Assistance FSA

Adoption Assitance will be capped at the following limits for 2022:

  • Employee: $12,890

Please note that deduction 37 has been renamed to FSA S125 Dependent Care from S125 Dependent Care for additional clarity.