The Flexible Benefit Plans allow you to pay for company-sponsored insurance premiums, pay for out of pocket medical costs, and pay for qualified child care expenses on a pretax basis. These expenses are deducted from your gross income before federal withholding. Your W-2 tax form will show an adjusted gross for tax purposes. As an end result, you will probably pay fewer taxes.
Health and Dental Insurance Premiums (Section 125 Plan Pre-tax Program)
The medical and/or dental insurance premiums expenses which you may incur are deducted from your gross income before taxes when you participant in the Flexible Benefits Plan. When you enroll for health and dental insurance for you or your dependents, you do not have to do anything to be in the Pre-Tax Saver Plan, you are automatically enrolled. You must sign a waiver if you wish to opt out of the Pre-Tax Saver Plan.
Health Flexible Spending Account (FSA)
Employees may contribute funds to the account through pre-tax payroll deductions and withdraw the funds tax free to pay for qualified medical expenses. Funds can by used to pay qualified expenses from your effective date through December 15, 2011.
Once the employee designates how much he wants to contribute during the open enrollment period, or in the case of a new employee, within thirty days from the hire date, the employee is not allowed to change the amount or drop out of the plan during the year unless he experiences a change of family status.
The maximum amount an employee can contribute annually is $5000. The funds can be used to reimburse all qualified expenses for the employee and eligible dependents regardless of whether they are enrolled in the City’s health plan. 100% of funds are available on your effective date. By law, the employee forfeits any unspent funds in the account at the end of the year.
Employees will receive a debit card which can be used at the point of service. Claims can also be filed on-line, by mail, or fax. Employees must retain documents that support and validate Debit card transactions. In some cases, employees may be required to submit the receipts or records to substantiate a claim.
Dependent Care Spending Account
Employees may contribute funds to the account through pre-tax payroll deductions and withdraw the funds tax free to pay for qualified child care expenses. Funds can by used to pay qualified expenses from your effective date through December 15, 2011.
Once the employee designates how much he wants to contribute during the open enrollment period, or in the case of a new employee, within thirty days from the hire date, the employee is not allowed to change the amount or drop out of the plan during the year unless he experiences a change of family status.
The maximum amount an employee can contribute annually is $5000 including any contributions through a spouse’s plan. The funds can be used to reimburse all qualified expenses for eligible dependents. Funds are only available as money is put into the account via payroll deduction. By law, the employee forfeits any unspent funds in the account at the end of the year.
Employees will receive a debit card which can be used at the point of service. Claims can also be filed on-line, by mail, or fax. Employees must retain documents that support and validate Debit card transactions. In some cases, employees may be required to submit the receipts or records to substantiate a claim.
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