Flexible Spending Accounts allow employees to set aside money to pay for unreimbursed medical and/or dependent care expenses - all on a pre-tax basis! This lowers taxable income, which means bringing home more net pay. Flexible Spending Accounts (FSA) are similar to a checking account. Employees deposit pre-tax money from paychecks to use later. They can pay for qualified medical expenses not covered by the company's health plan or pay for dependent care (Daycare or Elderly Care) expenses.