Flexible Spending Accounts Flexible Spending Accounts.
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Transcript of Flexible Spending Accounts Flexible Spending Accounts.
![Page 1: Flexible Spending Accounts Flexible Spending Accounts.](https://reader034.fdocuments.net/reader034/viewer/2022050714/56649cac5503460f9496e2c8/html5/thumbnails/1.jpg)
Flexible Spending Flexible Spending AccountsAccounts
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Employee Benefits
Outline of PresentationOutline of Presentation
• What is a Flexible Spending Account (FSA)?• Two Types
– Medical– Dependent Care
• Examples of Eligible/Ineligible Expenses• Reimbursement • Enrollment Information• Questions
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Employee Benefits
What is an FSA? What is an FSA?
• A Flexible Spending Account (FSA) is an employer-sponsored benefit that allows you to pay for eligible medical and/or dependent care expenses on a pre-tax basis.
• You direct a part of your pay into a special, tax-free account that you use to reimburse yourself for eligible out-of-pocket medical and dependent care expenses.
• Contributions used for FSAs are taken out of your salary before federal/state income taxes, FICA (Social Security and Medicare) taxes are applied.
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Employee Benefits
AN EXAMPLEAN EXAMPLE• John earns $35,000/year.
• Medical Spending Account: $240/year ($10.00/pay)
• July 2009- Eyeglasses ($240)– Debit Card– Manuel Claim
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Employee Benefits
WHAT ADVANTAGES WHAT ADVANTAGES DID THIS GIVE JOHN?DID THIS GIVE JOHN?
REDUCTION IN W2 EARNINGS
REPORTABLE W2 EARNINGS WITH JOHN’S SPENDING ACCOUNT ELECTION ARE NOW $34,760.
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Employee Benefits
INCREASE IN TAKE HOME PAYW/OUT SPEND.
ACCOUNTWITH SPEND.
ACCOUNT
EARNINGS $ 35,000.00 $ 34,760.00
S.S. TAX (7.65%) - $2677.50 - $2659.14
F.I.T. TAX (20%) - $7,000.00 - $6952.00
STATE TAX (3%) - $1,050.00 - $1,042.80
$24,272.50 $24,106.06
MEDICAL EXPENSE - $ 240.00 - $0
TAKE HOME PAY $24,032.50 $24,106.06
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Employee Benefits
Two Types of FSAsTwo Types of FSAs
• Medical Spending Accounts– $3,000/Plan Year– Use It Or Lose It Provision
• Dependent Care Spending Accounts– $5,000/Plan Year– Use It Or Lose It Provision
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Employee Benefits
Eligible Expenses (Medical FSA)Eligible Expenses (Medical FSA)
• Acne treatment• Acupuncture• Co-pays (Inc. Rx)• Co-insurance Amounts &
Deductibles• Automobile Modifications
(physically handicapped)• Blood Pressure Monitoring
Devices• Blood Sugar Test Kits /Strips
• Carpal Tunnel Wrist Supports• Dental Treatment• Over-the-Counter Drugs• Hearing Aids• Laser Eye Surgery/Lasik• Learning Disability, Instructional
Fees• Medic Alert Bracelet or
Necklace• Prescription Glasses• Wheelchair
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Employee Benefits
Ineligible Expenses Ineligible Expenses (Medical FSA)(Medical FSA)
• Cosmetic Surgery• Dancing Lessons• Diaper Service• Electrolysis or Hair Removal• Funeral Expenses• Future Medical Care• Hair Transplant• Health Club Dues• Household Help• Insurance Premiums
• Maternity Clothes• Swimming Lessons• Teeth Whitening
• Veterinary Fees
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Employee Benefits
Eligible Expenses Eligible Expenses (Dependent Care FSA)(Dependent Care FSA)
• Adult Daycare• After-School Care• Babysitter (work-related)• Before-School Care• Day Camp• Daycare• Room and Board (Nanny)• Tuition (Nursery and Preschool)
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Employee Benefits
Ineligible Expenses Ineligible Expenses (Dependent Care FSA)(Dependent Care FSA)
• Babysitter (Personal)• Food• Housekeeper• Overnight Camp• Tuition (K+)
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Employee Benefits
ReimbursementReimbursementPY 2008-2009PY 2008-2009• Deadline for claims submission to Loomis is 05/31/09.
• Claim must be incurred prior to 06/01/09.
• 06/01/09 – 08/31/09– Complete Loomis Claim Form– Submit form to Human Resources– Checks will be run every Thursday
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Employee Benefits
ReimbursementReimbursementPY 2009-2010PY 2009-2010
• Administer by AmeriFlex
• MBI Card and/or Claim Forms
• Check or Direct Deposit
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Employee Benefits
Enrollment InformationEnrollment Information
• Complete the AmeriFlex Application
• If you are currently enrolled in a Flexible Spending Account, you must re-enroll for the new plan year. You will not be automatically enrolled.
• Deadline: Friday, May 1st
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Employee Benefits
QuestionsQuestions