Answer:
B) Money in flexible spending accounts is not taxed, so employees get more take-home pay.
Step-by-step explanation:
The main advantages of flexible spending accounts are:
- Money spent in flexible spending accounts can be deducted from your gross income, which means that you will end up paying less taxes.
- Some auxiliary healthcare costs are not covered by health insurance (e.g. OTC prescriptions, diagnostic tests, travel vaccines, etc.) but can be paid by flexible spending accounts.