If you're an employee who participates in a flexible spending account (FSA) through your employer, you may be required to undergo nondiscrimination testing once a year. This testing is mandated by the IRS and is designed to ensure that your FSA benefits are being used in a nondiscriminatory way. You can checkout this site to get more information about FSA nondiscrimination testing.
To comply with the nondiscrimination testing requirement, FSA program administrators must:
1. Review their current employment practices and procedures to identify any areas in which they may be discriminating against applicants or employees based on one of the protected categories;
2. Conduct an equality-seeking inquiry into any complaints of discrimination filed by individuals who allege they have been discriminated against in connection with their FSA participation.
3. Take appropriate action to eliminate any discriminatory practices identified during the equality-seeking inquiry.
By ensuring that applicants and participants are not discriminated against, nondiscrimination testing can help increase access to important government programs. This includes programs such as food stamps, unemployment insurance, and housing assistance.
Nondiscrimination testing can help ensure that all individuals who are eligible for government assistance receive the same level of service. This means that no one will be unfairly treated due to their protected characteristic or disability.