1. Flexible Spending Arrangement (FSA)

2. What is an FSA Employer-sponsored benefit
Allows employees to reimburse medical expenses
Withheld from pay check pre-tax
Federal
State
SSN/Medicare

3. How does the plan work?
Once a year employees elect an annual amount to be deducted from salary
New employees may opt on a quarterly basis
ISI withholds from pay check each month
Employee submits expenses for reimbursement to plan administrator
Use it or lose it

4. Employee voluntarily elects this option.
Each employee determines what amount they want available in their FSA account annually
The amount is spread out over the plan year (12 months) in an even amount
Initial enrollment period will be less than 12 months
New employees the period will be adjusted by the # months left in the plan year
Employee cannot make monthly changes to the amount withheld
Employee registers with the plan administrator
Employee must fill out salary reduction agreement

5. Qualified expenses
Medical & dental expenses for employees and their families
Health insurance non-employer premiums paid after taxes
Dependant day care expenses
Term life and cancer non-employer premiums paid after taxes
Excludes disability
Transportation expenses for qualified commuter fees

6. Use it or lose it
The annual amount withheld from payroll must be used with the current year
Any amount remaining in the employees account is returned to ISI
ISI chooses how that money is to be used

7. Benefit to employee Lessens amount of pay subject to taxes.
Savings method for expected expenses.
Full election amount of medical expense available upon start of new plan year.