Flexible Spending Accounts (FSAs) are tax-advantaged financial accounts that can be set-up through employers' cafeteria plans in the United States. An FSA allows an employee to designate a portion of his or her pre-tax earnings to pay for qualified expenses as established in the cafeteria plan, most commonly for medical expenses, but often for dependent care or other expenditures. The employer is also allowed to make contributions to employee FSAs, if desired, in order to offer a greater benefit to the staff. Since the money deducted from an employee's pay for transfer to an FSA is not subject to federal, state, or payroll taxes, employees can save upwards of 40% on eligible expenses, and sometimes more, depending on their tax bracket.