Flexible Benefit Plan Information
The College provides a "flexible benefit" package designed to reduce employee tax liabilities. The reimbursement account helps the employee save, in pre-tax dollars, the money needed to cover certain medical expenses not covered by insurance. Premium payments for health coverage and dental insurance can also be tax sheltered. Money placed in this account is not subject to federal and state income tax and FICA/Social Security tax. You may elect to have up to $2,500 credited to this account. Please examine your health and dental insurance plans to estimate what your out-of-pocket expenses will be.
You may submit claims as expenses are incurred during the year and will receive full reimbursement up to your maximum annual contribution. Funds will be returned to you upon proof of payment for non-reimbursed medical and dependent care expenses. Remember that claims must be incurred no later than March 15 of the following year. You have until March 30 to file for these funds. Any balance in the account after March 30 must be forfeited in accordance with IRS rules. Please estimate carefully.
The dependent care features provide the option to tax-shelter the amount you pay for dependent (day care) expenses if these amounts are paid to permit the employee (and spouse) to be employed. This option may be taken instead of the tax credit on your individual federal tax return. You may elect to have up to $5,000 credited to this account. Unlike the health care account, your dependent care account will be funded as you contribute to it and you will receive reimbursement for actual expenses. Like the Health Care Account, any balance in your account after March 30 must be forfeited.
A Qualifying Event is any of the following:
- Birth or adoption of a child
- Divorce, Legal Separation or annulment
- Death of spouse and/or dependent
- Termination of employment by employee
- Unpaid leave of absence
- Switching from part-time to full-time (or vice-versa) employment
- Significant change in family's health coverage attributable to spouse's employment
- Dependent ceases to satisfy requirements for unmarried dependents due to attainment of age, student status or any similar circumstances as provided under the accident or health plan under which the employee receives coverage
Changes must be made within 30 days of a change in status. Please contact Human Resources for a plan document or change form.
Current enrollees in the Flexible Benefit Plan may visit http://www.myflexonline.com to view current contributions and claims. This is a very useful site that gives a total picture of an employees Health Care Reimbursement Plan and/or Dependent/Child Care Reimbursement Plan.The site includes information of what are and are not allowable expenses. Claim forms may also be printed from this site.