For Your Benefit Flexible Spending Account FSA Informational Overview

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For Your Benefit Flexible Spending
Account (FSA)Informational Overview
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How does an FSA Work?

• An employee elects an annual target amount,
  which will be deducted via their paycheck in
  equal increments.
• The employees tax base is reduced by the target
  amount.
• The employee incurs and submits expenses, and is
  reimbursed with before tax dollars.

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When Joining the FSA, You Should Consider...

• Benefits
• Income tax and payroll savings (about 30)
• FSA contributions are exempt from
• federal income taxes
• social security taxes
• state taxes (if applicable)

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When Joining the FSA, You Should Consider...

• Benefits
• FSA can be used to pay for
• Eligible Health Care expenses
• for yourself
• your dependents
• any non-insured dependent claimed on your tax
  return
• Dependent Care expenses

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John has decided NOT to join the FSA program

• Salary..25,000
• Reductions... 0
• Taxable income 25,000
• At a standard 30 rate John would pay
• 7,500 in income taxes

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Sara HAS decided to join the FSA program

• Salary.25,000
• Election. 5,000
• Taxable income 20,000
• At a standard 30 rate Sara would pay
• 6,000 in income taxes,
• or 1,500 less than John.

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When Joining the FSA, You Should Consider...

• Concerns
• Use it or lose it IRS rule
• - amounts not used at year-end are forfeited
• Once elected, amounts cannot be changed during
  the year (except for certain life events)

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FSA Payroll Deductions

• Deductions will be taken in equal increments from
  each paycheck during the plan year.

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FSA Payroll Deductions

• Payroll deduction calculation
• Annual contribution amount ? No. of paychecks
  for the year

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FSA Payroll Deductions

• Payroll deduction calculation
• Example 2,400 elected for health care FSA
• Payroll Deduction 2,400 ? 24
• 100/paycheck

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FSA Claims Submission

• Submitted to Ceridian
• As incurred during plan year
• (January 1 - December 31)
• Reimbursed weekly

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FSA Claims Submission

• Can be submitted by fax or mail

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FSA Accounts

• Health care and dependent care accounts are
  separate
• Funds cannot be transferred between accounts

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FSA Election Changes

• Per IRS regulations you may change your FSA
  election when you have a
• 1. Status Change
• Marriage, Divorce, or death
• Birth, or adoption
• Employment (begin or stop working)
• Loss of Full-time Student Status

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FSA Election Changes

• Per IRS regulations you may change your Dependent
  Care FSA election when you have a
• 2. Cost/Coverage Change
• Providers cost changes, or
• You begin or stop sending your dependent for day
  care

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Account Statements Info

• Will be mailed with each reimbursement

Account Information can also be received via
Ceridians 24-hour Information Line.
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FSA Website

• www.ceridianfsa.com
• Account Information
• Current claim status information
• What was paid and when
• How much money is left in your account
• Claim Forms
• Print and use on the spot. No need to wait!

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To Enroll in the FSA Program

• Go to www.ceridian-benefits.com
• Click on Online Services
• Under Participant Services, go to Enrollment
• Enter Access Code 100882
• Complete the New User section
• Enter your SSN with dashes in the SSN box
• Enter your PIN number (last 6 digits of your SSN
  reversed)
• The system will prompt you to change your PIN
• Go to Open Enrollment screen
• Confirm your election by entering OK
• Print your Confirmation Statement
• Click SAVE to finalize the election and data
  entry