Presentation on theme: "Using tax-free dollars is the smarter way to pay medical expenses YourFlex makes it easy FSA Enrollment for Skyline CAP October 1, 2014- September 30,"— Presentation transcript:
Using tax-free dollars is the smarter way to pay medical expenses YourFlex makes it easy FSA Enrollment for Skyline CAP October 1, 2014- September 30, 2015
Highlights Flexible Spending Account Benefits: Allows you to shift a portion of your income from taxable to tax-free. Completely voluntary. All employees working at least 30 hours/week can participate. Separate from health/dental insurance. Benefits you, your spouse and your dependents.
4 Parts You Can Pre-Tax Premium Conversion Medical Reimbursement – up to $2,500/yr, with no minimum Dependent Care Reimbursement - up to $5,000/yr, with no minimum. If married and filing separately $2,500/yr maximum Private Premium Plan
Types of Medical Expenses Allowed Medical and Prescription Co-Payments Dental or Orthodontics Eye Glasses or Contact lenses, etc Any expenses allowed to be deducted as an Itemized Expense on your taxes.
Important Highlights Over-the-Counter (OTC) Medications Since January 1, 2011 are no longer allowed to reimburse for OTC medications without a prescription. Updated Definition of a Dependent An employee can get reimbursed for dependents up to the end of the calendar year in which the child turns 26 years old Qualified Reservist Distribution (QRD) Since January 1, 2011, a participant may receive a QRD and receive back any unused amounts in their FSA Medical Reimbursement Account as taxable income if they meet certain requirements.
A Dependent: Defined Must be for the physical care of a child under the age of 13 in order for the parents to: Work Seek work, or Attend School
Private Premium Reimbursement Allows you to put money aside pre-tax to get reimbursed for: A health related insurance premium Paid for personally– outside the company Policy has to be in the employee’s name The policy must pay only if a specific condition occurs Can not accrue cash value Can not be for LTC or Life Insurance
What’s the Process? Sign Up! Each pay period contribute pre-tax Send in a Request for Reimbursement when you incur approved medical expenses We review the claims you send for compliance We send you your money back out of your account WEEKLY...If a claim is received by 5:00pm on Tuesday we have your check in the mail by Friday (or deposited into your account if you have direct deposit).
Things to Remember One chance a year to sign up Amount can not normally be changed during the plan year – exceptions are limited to life status changes. Use it OR Lose It For all reimbursement accounts, services must be received between October 1, 2014—December 15, 2015 (including 2 ½ month grace). All receipts must be received by January 31, 2016. For dependent care & Private Premium you cannot get your money until it is in your account.
Here’s How to Enroll Complete Salary Redirect Agreement If you would like a Debit Card, please complete form if you do not already have one. Turn in debit card form with Salary Redirect Agreement Remember! No Roll-over of elections from prior year
For More Detail... See Brochure Consult Welcome Package that will be coming in the mail Call The Capitol Group of Companies at: (800) 527-0669 Or plan administrator at: (800) 858-9546.
The MySource Card: in a Nutshell By Linda Meyerhoffer, CPA
Introduction The MySource Card is an integrated debit card will give you the option to receive payments out of your Medical Reimbursement Account and is tied to the available balance in your account.
You Will Still Have a Choice... For each expense, you can either: Use your debit card, OR Submit a reimbursement request after services are received and then you will be reimbursed.
Merchant Types The card allows employees to use the debit card at certain merchant types: Physicians Pharmacies Dentists Vision Care Offices Hospitals Supermarkets & Grocery Stores (see IIAS list) Discount Stores & Wholesale Clubs (see IIAS list) The Inventory Information Approval System (IIAS) is a system set up to automatically identify eligible transactions and only charge those items at the register.
AutoPay Requirements If the debit meets these requirements, no documentation necessary: Pre-defined co-pay amounts, or Reoccurring expenses that have been previously reimbursed with the same amount, provider & time period, or If the IIAS is used
What if the Debit Does Not Equal AutoPay Requirements? Employee will need to submit a reimbursement request within 6 weeks with support just as they do now.
The Card Advantage CASH FLOW Multiple Cards Allowed Integrated into existing website – one logon does it all: www.yourflex.com
How Does It Work? 6 Week Process Email #1 – Notification – debit made Email #2 – Status email – no support vs. need support Email #3 – Reminder (3 weeks later) – need receipts submitted You will be called after 6 weeks to request receipts promptly Email #4 – Final email that card has been frozen
How Does It Work? IF NOT SETTLED IN 6 WEEKS... Any reimbursement requests received after will be applied to the debit first before being reimbursed. You may be asked to send in a check, if no alternate receipts are available. Card will be reactivated once paid – 3 strikes policy.
Summary Balancing the demands of life are hard enough...let us help you make things easier.