Flexible Spending Accounts
ADP Benefit Services administers our Flexible Spending Account plans. Use your alternate ID number when filing claims for eligible health care and dependent care expenses. Your 10-digit alternate ID number is available on your pay stubs.
What is it?
Flexible Spending Account Plans allow you to set aside a portion of your pretax salary
to pay for certain dependent care or health care expenses that are not otherwise reimbursed.
There are two Flexible Spending Accounts:
Health Care Spending Account (HCSA)
The HCSA allows you to save for medical, dental, vision and hearing expenses such as:
orthodontia, eyeglasses, medical, dental, or drug copays and deductibles, out-of-pocket expenses and some
over-the-counter drug products.
Dependent Care Spending Account (DCSA)
The DCSA allows you to save for day care, after school care, elder care, or care in your home.
Who can participate?
Employees and their eligible dependents do not need to be covered by the Enterprise medical plan in order to participate in flexible
spending account plans. Flexible spending accounts are funded through reductions in your compensation, which are then credited to
separate plan accounts for your benefit. These accounts are retained by the company until you submit claims for reimbursement.
Why participate?
With a little planning, employees taking advantage of this program can pay less in taxes and have more spendable income. The HCSA is an excellent way to save for those predictable, out-of-pocket medical expenses, such as prescription drugs, eyeglasses, orthodontia or doctor office visit copays. One of the largest expenses for many families is dependent care expenses. Take a few minutes to add up your dependent care expenses and complete the tax advantage worksheet (PDF) to see
how much you could save.
Once you have incurred an eligible expense, simply fill out a claim form
and fax or mail it to the fax number or address on the claim form. Reimbursement checks can be deposited directly into your personal
bank account via direct deposit. Direct Deposit funds will be available for withdrawal 48 hours after the date of deposit.
Contributions
The Health Care Spending Account plan allows you to set aside up to $4,000 pretax each year for
qualifying health care expenses.
The Dependent Care Spending Account plan allows you to set aside up to $5,000 pretax each year
for qualifying dependent care expenses.
Important Note:
Estimate conservatively when deciding how much to set aside. Due to IRS regulations any money left
in the account at the end of the Plan Year must be forfeited.
The election amount you choose during enrollment cannot be changed unless there is a qualifying life-changing event. You have until March 31 of the next year to request reimbursement for eligible expenses incurred during the Plan Year. If you terminate participation in the Health Care or Dependent Care spending account plans at any time during the year, whether because of your termination of employment or the occurrence of a life-changing event or otherwise, you may still submit a claim for reimbursement of eligible health care expenses after your participation ends. The expenses must have been incurred prior to termination of your plan participation and they must be submitted for reimbursement within 90 days of termination of your plan participation.
Because flexible spending accounts provide a unique opportunity to reduce your taxes, certain Internal
Revenue Service (IRS) requirements apply which limit the amount you can deposit into your account.
Refer to IRS Publications 502 and 503 at
www.irs.gov.
How do I enroll?
To participate in the Flexible Spending Account plans, employees must complete the Flexible Spending
Account section of their benefits enrollment form when they are first
eligible
or later during the annual open enrollment period. Employees choosing to continue participation from year
to year are required to re-enroll into the plan and elect contribution amounts each year during open enrollment.
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