1. INFORMATION ABOUT YOUR:
FLEXIBLE BENEFIT CAFETERIA PLAN
SOUTHERN ADMINISTRATORS AND BENEFIT CONSULTANTS, INC.

2. PLEASE CHECK WITH YOUR PERSONNEL OFFICE TO DETERMINE YOUR PLAN YEAR

3. YOUR PLAN MAY OFFER ONE OR MORE OF THE FOLLOWING OPTIONS
THE OPTIONS OUTLINED IN THIS PRESENTATION ARE:

4. DEPENDENT CARE SPENDING ACCOUNT UNREIMBURSED MEDICAL SPENDING ACCOUNT
OPTIONS ARE:
PREMIUM ONLY PLAN
DEPENDENT CARE SPENDING ACCOUNT
UNREIMBURSED MEDICAL SPENDING ACCOUNT

5. PREMIUM ONLY PLAN
THIS ACCOUNT ALLOWS YOU TO PAY FOR YOUR ELIGIBLE INSURANCE PRODUCTS SUCH AS: HEALTH, DENTAL, CANCER/ICU AND HOSPITAL INDEMNITY INSURANCE PREMIUMS WITH TAX FREE DOLLARS.
BY PARTICIPATING IN THE PREMIUM ONLY PLAN, ALL ELIGIBLE INSURANCE PREMIUMS THAT ARE PAYROLL DEDUCTED WILL BE DEDUCTED BEFORE THE COMPUTATION OF STATE, FEDERAL AND FICA TAXES.
LET’S LOOK AT HOW THIS CAN PUT MORE CASH IN YOUR POCKET…

6. YOUR PAYCHECK WITHOUT A PREMIUM ONLY PLAN
$ GROSS SALARY
-$ STATE, FEDERAL AND FICA TAXES $
-$ INSURANCE PREMIUM
$ TAKE HOME PAY

7. YOUR PAY CHECK WITH A PREMIUM ONLY PLAN
$ GROSS SALARY
-$ INSURANCE PREMIUM
$ IRS REPORTABLE WAGES
-$ STATE, FEDERAL & FICA TAXES
$ TAKE HOME PAY

8. BEFORE AND AFTER A PREMIUM ONLY PLAN
LET’S COMPARE
BEFORE AND AFTER A PREMIUM ONLY PLAN
BEFORE
$2000 GROSS SALARY
-$ 600 TAXES
$1400
-$ 150 INSURANCE
$1250 TAKE HOME PAY
AFTER
$2000 GROSS SALARY
-$ INSURANCE
$1850
-$ TAXES
$1295 TAKE HOME PAY
BY PARTICIPATING YOUR TAKE HOME PAY INCREASED BY $45.00

9. DEPENDENT CARE SPENDING ACCOUNT
IF IN ORDER FOR YOU AND YOUR SPOUSE TO WORK, YOU NEED SOMEONE TO CARE FOR YOUR DEPENDENT. THIS OPTION MAY SAVE YOU MORE THAN THE TAX CREDIT YOU CLAIM AT THE END OF THE YEAR.
ELIGIBLE DEPENDENT:

10. A QUALIFYING DEPENDENT IS:
A DEPENDENT WHO WAS UNDER AGE 13 WHEN THE CARE WAS PROVIDED AND FOR WHOM YOU CAN CLAIM AN EXEMPTION
A SPOUSE WHO IS PHYSICALLY OR MENTALLY NOT ABLE TO CARE FOR HIMSELF OR HERSELF
A DEPENDENT WHO WAS PHYSICALLY OR MENTALLY NOT ABLE TO CARE FOR THEMSELVES AND FOR WHOM YOU CAN CLAIM AN EXEMPTION

11. DEPENDENT CARE HOW DOES IT WORK?
FIRST YOU MUST DETERMINE THE AMOUNT YOU WILL BE SPENDING ON DEPENDENT CARE DURING YOUR PLAN YEAR. (YOU MAY PRETAX UP TO $5,000 OR $2,500 IF YOU MARRIED FILING A SEPARATE RETURN)
YOUR YEARLY AMOUNT WILL BE DIVIDED BY THE NUMBER OF PAY PERIODS IN YOUR PLAN YEAR.
THAT AMOUNT WILL BE DEDUCTED TAX FREE AND PLACED INTO AN ACCOUNT
AS THE EXPENSE IS INCURRED, YOU SUBMIT A RECEIPT TO SABC TO BE REIMBURSED
CHECK WITH YOUR TAX ADVISOR TO SEE IF THIS OPTION WILL SAVE MORE THAN THE TAX CREDIT

12. UNREIMBURSED MEDICAL SPENDING ACCOUNT
MOST PEOPLE INCUR OUT OF POCKET MEDICAL
EXPENSES DURING THE YEAR. OUT OF POCKET
EXPENSES ARE THOSE EXPENSES THAT ARE NOT
COVERED BY INSURANCE OR ANY OTHER 3RD PARTY.
THEY INCLUDE:

13. PLEASE REVIEW DEDUCTIBLE MEDICAL EXPENSE LIST PROVIDED
OUT OF POCKET EXPENSES
DEDUCTIBLES
CO-PAYS
VISION
DENTAL
MEDICAL
OVER THE COUNTER DRUGS
PLEASE REVIEW DEDUCTIBLE
MEDICAL EXPENSE LIST PROVIDED

14. UNREIMBURSED MEDICAL TO PARTICIPATE SIMPLY ESTIMATE YOU AND YOUR
FAMILY MEMBERS (SPOUSE AND DEPENDENT
CHILDREN) OUT OF POCKET MEDICAL EXPENSES
THAT WILL BE INCURRED DURING YOUR PLAN YEAR.
BE CONSERVATIVE, IF YOU DON’T INCUR THE
EXPENSE BY THE END OF YOUR COVERAGE PERIOD,YOUR
FUNDS WILL BE FORFEITED TO YOUR EMPLOYER.

15. UNREIMBURSED MEDICAL
CHECK WITH YOUR EMPLOYER TO DETERMINE YOUR YEARLY MAXIMUM.
YOUR ELECTION IS DIVIDED BY THE NUMBER OF PERIODS IN THE PLAN YEAR AND DEDUCTED TAX FREE.
YOUR ANNUAL ELECTION IS AVAILABLE TO YOU AT ALL TIMES, MEANING YOU DO NOT HAVE TO WAIT FOR THE FUNDS TO BE DEDUCTED FROM YOU CHECK BEFORE CLAIMING. EXAMPLE: IF YOUR PLAN STARTS JANUARY 1ST AND YOU ELECT $ A YEAR ($50.00 A MONTH), AND YOU INCUR $ IN ELIGIBLE EXPENSES IN JANUARY, YOU COULD CLAIM THE FULL $ YOUR EMPLOYER FRONTS THE MONEY TO YOU AND THE DEDUCTIONS WOULD CONTINUE THROUGHOUT THE YEAR TO PAY THE PLAN BACK.

16. HOW AM I REIMBURSED? COMPLETE A REQUEST FOR REIMBURSEMENT
INCLUDE DEPENDENT CARE AND/OR UNREIMBURSED MEDICAL THIRD PARTY RECEIPT(S). PLEASE COPY RECEIPTS ON A STANDARD SHEET OF PAPER
MAIL, FAX OR BRING YOUR CLAIM TO OUR OFFICE FOR REIMBURSEMENT WHILE YOU WAIT. PLEASE COPY RECEIPTS ON AN STANDARD SHEET OF PAPER
ALL CLAIMS ARE PROCESSED THE DAY THEY ARE RECEIVED AND MAILED TO YOUR HOME
DEPENDENT CARE FUNDS MUST BE AVAILABLE BEFORE REIMBURSEMENT CAN MADE

17. WHAT RECEIPTS DO I NEED?
RECEIPTS MUST BE FROM A THIRD PARTY AND HAVE THE FOLLOWING INFORMATION:
DATE OF SERVICE
TYPE OF SERVICE
SERVICE PROVIDER
YOUR COST AFTER INSURANCE AND DISCOUNTS
DRUG RECEIPTS MUST HAVE THE NAME OF DRUG ON THE RECEIPT OR STATE CO-PAY
OVER THE COUNTER DRUGS MUST HAVE THE NAME OF ITEM PRINTED ON THE RECEIPT
EXPLANATION OF BENEFITS(EOB) FROM YOUR
INSURANCE CARRIER IS THE BEST RECEIPT

18. CAN I MAKE A CHANGE TO MY ELECTION DURING THE PLAN YEAR?
YOUR ELECTION MUST REMAIN THE SAME UNLESS YOU EXPERIENCE A CHANGE IN STATUS:
MARRIAGE
BIRTH/ADOPTION
DEATH OF SPOUSE OR DEPENDENT
CHANGE IN SPOUSE’S EMPLOYMENT STATUS
SIGNIFICANT CHANGE IN INSURANCE OR DEPENDENT CARE COST/COVERAGE
THE EVENT MUST BE CONSISTENT WITH THE CHANGE REQUESTED

19. WHAT IF I TERMINATE MY EMPLOYMENT?
ALL INSURANCE DEDUCTIONS WILL CEASE
DEPENDENT CARE DEDUCTIONS WILL CEASE
IMPORTANT: IF YOU PARTICIPATE IN UNREIMBURSED MEDICAL, PAYROLL MAY DEDUCT YOUR REMAINING ELECTION OUT OF YOUR LAST PAYCHECK OR THE PLAN MAY TERMINATE DEPENDING ON YOUR PLAN DESIGN. PLEASE READ YOUR SUMMARY PLAN DESCRIPTION OF ASK YOUR HUMAN RESOURCE REPRESENTATIVE HOW YOU PLAN IS DESIGNED.

20. DISCLAIMER THIS PRESENTATION WAS FOR INFORMATION PURPOSES
ONLY. THIS IN NO WAY DEFINES YOUR PLAN DESIGN. YOUR
PLAN DOCUMENT WHICH IS AVAILABLE FROM YOUR EMPLOYER
DICTATES THE FEATURES, DESIGN AND OPERATION OF YOUR
PLAN.

21. WE LOOK FORWARD TO SERVING YOU!
PLEASE REVIEW ADDITION INFORMATION ON OUR WEB SITE
WE LOOK FORWARD TO SERVING YOU!
SOUTHERN ADMINISTRATORS AND BENEFIT CONSULTANTS, INC.