This month is the Open Enrollment period for Atlantic Cape’s Flexible Spending Account (FSA), administered by Wage Works. All full-time employees are eligible for this very valuable benefit in 2016.
An FSA is similar to a savings account for healthcare expenses, like co-payments and co-insurance, not covered by your insurance plans. An FSA can also be used for dependent care expenses. You can save an average of 30% on these expenses, because the money you contribute to these accounts is not subject to payroll taxes.
There are two accounts from which to choose. You may select one of them, or both of them.
Health Care FSA- Use this account to pay form medical, prescription, dental (including orthodontia), and vision care expenses that you and your eligible dependents incur. Many, (not all) of these expenses can be paid using your Wage Works issued Benefits Debit Card.
Dependent Care FSA- Use this account to cover eligible child care or elder care expenses. Dependent Care FSA claims must be submitted for reimbursement. This can be done through the Wage Works self-service website.
The maximum annual contribution allowed by the IRS to the Health Care FSA is $2,500.
The maximum annual contribution allowed to the Dependent Care FSA is $5,000.
FSA annual contributions will be taken over 26 pays for employees paid on a 12-month pay schedule and 22 pays for employees paid on a 10-month pay schedule.
Pre-tax contributions made to these accounts must be used by the end of the calendar year or you will lose the money. Therefore, if 2016 is the first year you are taking part in this benefit, you should be conservative in the amounts that you designate.
If you have questions, contact Sam Amendolia, benefits coordinator, at ext. 5611 or email@example.com.