Download - Using Healthcare and Dependent Care Flexible Spending Accounts An FSA = An Opportunity to Save

Using Healthcare and Dependent Care Flexible Spending AccountsAn FSA = An Opportunity to Save

Imagine…

There is $300 in the HR office for every employee to pick up, no strings attached.

How many of youwould pass that up?

©2009. ADP. Confidential Material.

Got one of these?


Want your software at a discount?


How about great savings on hardware?


What is a Flexible Spending Account (FSA)?

• Two types:• Healthcare

• Dependent Care

• You do not pay federal income tax on the funds in your account. It’s like getting a coupon for a discount up to 40%.

• Determine amount you want deducted from your paycheck

• Money is put into your account before taxesare taken out

How does it work?

• It saves you money

• It isn’t tied to a certain kind of healthcare plan, like a high deductible plan

• It’s easy to use


Why should I use an FSA?

• Use the funds in your FSA to pay for eligible expenses

• FSA funds don’t carry over to the next year and you have to re-enroll every year

• It’s easier than you might think to spend all your FSA dollars


How do I get my money back?


Tax Saving Example

Or, how can bringing home less of my paycheck help me get more for my money?

By using her FSA, Kim brought home an additional $534 for the year!

Example of annual savings

With FSA Without FSA

Kim’s taxable income $55,000 $55,000

Pre-tax money depositedinto her FSA -$1,500 -$0

Kim’s remainingtaxable income $53,500 $55,000

Minus Federal, Medicareand Social Security taxes* -$19,073 -$19,607

Take-home pay spent onFSA-eligible health careexpenses -$0 -$1,500

Kim’s remainingtake-home pay $34,427 $33,893


Save BIG on Eligible Health Care FSA Expenses

• Examples of eligible expenses:

• Deductibles and co-payments

• Vision expenses (prescription eyeglasses, contact lenses)

• Dental expenses

• Prescription drugs

• Certain over-the-counter (OTC) drugs and medicines

• For a more comprehensive list, visit: www.flexdirect.adp.com.

Save on things you buy every day

http://www.flexdirect.adp.com/


Ineligible Health Care FSA Expenses

• Examples of ineligible expenses:

• Cosmetic surgery

• Teeth bleaching

• Health club memberships

• Insurance premiums

• For a more comprehensive list, visit: www.flexdirect.adp.com

A few things can’t be reimbursed



Save BIG on Dependent Care FSA Expenses

• Daycare and after-school care for your children while you work

• If you’re married, your spouse must work, be a full-time student or be disabled

• A dependent is defined as:

• A child under age 13 (tax dependent)

• A spouse or tax dependent who is mentally or physically incapable of caring for himself


Dependent Care FSA Expenses

Eligible

• Licensed nursery schools (Pre-K and under)

• Day care centers

• Day camps

• Care inside your home

Ineligible

• Educational expenses for school-age children

• Overnight camps

• Food

• Transportation

• Extracurricular activities


When can I sign up?

• FSA elections can be made:

• During your employer’s annual Open Enrollment period

• When you initially meet eligibility requirements

• If you have a qualified status change (based on plan design), for example, a change in:

• Legal marital status

• Number of dependents

• Employment status

• Dependent who ceases to meet eligibility


Contributions

Healthcare

• Your employer determines plan maximum and minimum

Dependent Care

• Your employer determines plan maximum (no more than the IRS limit of $5,000 per family) and minimum

Note: Your annual election goal amount is evenly dividedamong your paychecks throughout the year


Reimbursements

Eligible expenses can be reimbursed:

1. After the service is delivered by submitting a claim form

2. Reimbursements are:

• Made via check or Direct Deposit reimbursement

• Processed based on your employer’s schedule


Additional Information

• www.flexdirect.adp.com

• 24-hour access to account information

• Claim forms

• Substantiation forms

• FAQs

• 1-800-654-6695

• 24-hour access to recorded account information

• Live representatives available 8 a.m. – 8 p.m. Eastern Time (Monday through Friday)


Sign up NOW to save on purchasesyou make every day!

Download - Using Healthcare and Dependent Care Flexible Spending Accounts An FSA = An Opportunity to Save

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