The Tax Saver Flexible Benefits Plan provides eligible employees the choice of participating in one or more of the options listed below.
Eligible employees may tax shelter insurance premiums for medical, dental, vision and life insurance offered through the Office of Group Benefits (with the exception of the dependent life premium). There is no charge for participating in this option. Election to participate automatically renews each year unless changed during the annual enrollment period.
Spending Account Plan
Eligible employees may establish one or both of the following spending accounts, which allow them to use tax-free dollars to pay for eligible expenses:
- Health Care Spending Account: allows employees to set aside, on a tax-free basis, up to $4,000 per year for eligible non-reimbursable (i.e., out-of-pocket) medical expenses for the employee and his/her dependents.
- Dependent Care Spending Account: allows employees to set aside, on a tax-free basis, up to $5,000 per year per family (or $2,500 if married filing separately) for those dependent care expenses (i.e., day care) incurred in order for the employee and his/her spouse (if married) to work.
(see the Power Point presentation for specifics - and the FSA FAQ and General Information Sheet for quick reference)
How to use spending accounts:
- You have to determine an annual dollar amount (maximum limits apply) to be withheld by forecasting your out-of-pocket health care and/or dependent care expenses for the entire plan year.
- Your annual dollar amount is then deducted from your paycheck in equal installments.
- There is no tax liability on the money put into either the health care or dependent care spending account or on the money reimbursed through these spending accounts.
- As you incur and pay for eligible expenses that are not covered by any other plan, you must file a claim and be reimbursed from the appropriate spending account. The cost of this plan is $5.10 per month.
- Any unused before-tax dollars left in a spending account at the end of the year must be forfeited; however, this can normally be avoided through careful planning.
- Debit Card Claim Documentation Requirements - If you are a member of the Tax Saver Flexible Spending Account, claim documentation may be requested of you after purchasing eligible items with your debit card. Click here for details.
Eligibility for Enrollment
Employees appointed for more than 120 days and 75% of full-time or greater are eligible for enrollment.
Effective Date of Coverage
- New employees are eligible to begin participating in any of the above options effective the first of the month following completion of one full calendar month of service.
- Except as noted below, the decision to participate is binding for the remainder of that plan year.
- Thereafter, employees must make an election annually during the Annual Enrollment period for the following plan year.
- Changes in election outside the annual enrollment period can only be made if the employee experiences a qualifying change in family status, and such election changes must be consistent with the family status change. Examples of qualifying family status changes can be found by clicking HERE.
Plan Details
Interested employees should review plan details carefully as the Tax Saver Plan isn't for everyone, but for many employees, it can save hundreds of tax dollars each year.