Flexible Spending Account

The Employer Group provides a Flexible Spending Account for all employees working an average of 20 hours or more per week. This plan allows employees to pay qualified "out of pocket" health care and dependent care costs with pre-tax dollars. Depending on the employee's tax bracket, this plan can significantly reduce expenses and increase take-home pay by reducing taxable income.

Benefit Options

• Employees can pay their premiums for group health and dental insurance as well as some supplemental benefits and up to $50,000 in life insurance coverage on a pre-tax basis.
• A Dependent Reimbursement Account can be used for pre-tax payment of employee's expenses for child day care and/or dependent care (e.g. caring for parents).
• Medical Reimbursement Account can be used for pre-tax payment of employee's expenses for deductibles, co-payments, and medical expenses not covered by insurance.
• Contributions made by your employer can be excluded from your gross income, allowing you to take home more money in your paycheck.
• Paying out-of-pocket medical and dependent care expenses with before-tax dollars will give you a reduction in Federal, State, and Social Security taxes on those dollars, thus increasing your net take-home pay.

How does it work?

The employee decides how much they will spend during the calendar year for medical, dental, vision, and dependent care expenses. The employee sets aside that amount, up to the insurance plan maximums. Based on that estimate, the employee requests that money be deducted from their paycheck amount and deposed into a special account for the FSA plan. The special account is a tax-free account, set up specifically for the employee. Upon submission of a reimbursement form and receipt showing payment to The Employer Group, the employee is reimbursed for the expense on his/her next paycheck.

You can withdraw funds from the account to pay qualified medical expenses even if you have not yet placed the funds in the account.

Qualifying medical expenses include*:

• Co-insurance
• Deductibles
• Co-payments
• Contact lenses
• Glasses
• Eye exams
• LASIK eye surgery
• Prescription drugs
• Dental fees
• Chiropractic charges
• Over-the-counter drugs and medical supplies

*this is not a comprehensive list nor does it automatically qualify all abovementioned items to be reimbursable. All submitted expenses must meet guidelines established by the IRS. Contact The Employer Group for full details regarding this plan.