Pretty sure the rules governing HFSAs and any other benefit having tax ramifications are the way they are to line up with tax code. It isn't something Target can change.
Also pretty sure that most TMs, at least us hourly schmucks who work at the store level, make less than $50K. Many TMs might very well find this to be an attractive benefit.
I’ve grossed over 50 the last two years but I haven’t netted anywhere close to that. My state has no taxes taken out only the feds touch it. I also have a lot of pre-taxed deductions too which lowers my net. We need better workers at the distribution centers so come on over store team members 🦺 Promotion 💵
That only applies to Employer paid life benefits. It's called imputed income and only applies if they are paying for more than 50k of benefits on your behalf.