| Frequently
Asked Questions
How do employees benefit from
participating in an FSA?
How does the plan work?
How do employees participate?
Can participants change elections during
the plan year?
How do participants receive reimbursements?
What is an eligible expense?
What happens to the funds at the end of
the plan year?
Do employees enroll each plan year?
How is the plan regulated?
Who do I contact for more information?
How
do employees benefit from participating in an FSA?
FSAs
benefit employees by allowing them to pay for certain healthcare
and dependent daycare expenses with pre-tax dollars.
Each dollar that goes into the plan is free from federal,
state and (in most cases) FICA taxation.
How
does the plan work?
The employer identifies who is eligible (i.e. all
employees with over ninety days of service) within discrimination
requirements, what the maximum contributions are for the
plan (i.e. $5,000.00 for dependent daycare expenses), and
the duration of the plan year (typically a period of twelve
consecutive months). Each eligible employee elects whether
or not to participate in the plan and how much to contribute.
Those that participate receive pre-tax payroll-deductions
and submit claims for reimbursement of expenses throughout
the year.
How
do employees participate?
Eligible employees
complete and turn in an enrollment form prior to the beginning
of the plan year. This annual "election"
is divided into equal installments and is payroll deducted
pre-tax each pay period. Participants can then submit requests
and receive reimbursements for approved expenses incurred
throughout the plan year.
Can
participants change elections during the plan year?
Elections can only be changed if an employee experiences
a qualified change of status as defined by the IRS and outlined
in the plan's Summary Plan Description (SPD). Employees
should see their Human Resources Department for a copy of
the SPD and to submit a qualified change of status request
in order to change their election.
How do participants receive reimbursements?
Participants
can fax, email or mail claim forms and supporting documentation
to Chard Snyder. Supporting documentation can be a receipt,
a bill, an explanation of benefits summary and/or any documentation
that provides the date of service, the type of service and
the amount. After the claim has been reviewed and the expense
approved, payment is then issued to the employee via direct
deposit or a check. Claims are processed daily and payments
are issued at least once per week. Click
here for complete instructions for submitting an FSA
claim.
What is an eligible expense?
An eligible expense is any healthcare or dependent
daycare expense approved by the IRS for reimbursement through
the plan. These eligible expenses are often the same
expenses allowed for income tax return deductions. Please
note that expenses reimbursed through an FSA cannot be itemized
and resubmitted through an income tax return. Eligible expenses
include items and services incurred by the participant,
their spouse and any eligible dependents. Please click on
one of the following links to view the complete list of
eligible expenses for each of the FSAs:
Eligible
Healthcare FSA Expenses
Eligible
Dependent Care FSA Expenses
Eligible
Limited Healthcare FSA Expenses
What
happens to funds at the end of the plan year?
Any unused amounts left in the accounts at the
end of the plan year cannot be carried over into the next
plan year. These funds are forfeited and are not available
for reimbursements. Participants usually have a year-end
grace period determined by the employer to allow for time
to submit all claims.
Do employees enroll each plan year?
Employees' elections are for the duration of the
plan year in which they are made. New enrollment forms must
be turned in and new elections made each plan year.
How is the plan regulated?
In addition to regulations brought forth from Section
125 of the Internal Revenue Code, FSAs are also regulated
in part or in whole by the following entities and legislation:
Department of Labor
Federal,
State and Local Courts
Internal Revenue Service
Pension Welfare Benefits Administration
US Congress
COBRA
ERISA
FMLA
HIPAA
Section
104
Section 105
Section 106
Section 129
Section 152
Section 213
Please
contact our office with any questions about plan regulations.
Who do I contact for
more information?
If you require any assistance with an FSA, then
please contact us.
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