1. ABC Employer 2005 Plan Year February 1 – January 31
The Benefits of Flex
ABC Employer
2005 Plan Year
February 1 – January 31
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Pacific Administrators

2. Pacific Administrators
Today’s Purpose
Introduce the Concept of Pre Tax Benefits
Eligible Benefits: POP & FSA’s
How the Plan Works
What’s Next: Your Responsibilities at Open Enrollment
Common Q & A’s
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Pacific Administrators

3. Pacific Administrators
Tax Free Benefits
A quick review of how taxes affect your pay.
Your gross pay is taxed first, then your costs of benefits are withheld. You’re taxed on your entire pay.
Section 125 allows benefit costs to be withheld pre-tax.
Your benefit costs are deducted from your gross pay first, then you’ll be taxed on the remaining amount.
Bottom line: You’ll save money with flex!
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Pacific Administrators

4. Your Flex Plan Benefit Choices
Premium Only Plan (POP)
Flexible Spending Accounts (FSA)
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Pacific Administrators

5. Pacific Administrators
Premium Only Plan
Your cost of eligible benefit premiums can be withheld pre-tax, such as:
Group health, dental and vision insurance premiums.
Certain voluntary insurance premiums.
You’ll immediately benefit by having more take home pay due to lower taxable wages.
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Pacific Administrators

6. Flexible Spending Accounts
Child/Dependent Care FSA
Expenses you incur for the care of your child or dependent that allows you to work.
Health Care FSA
Out of pocket expenses for you and your family such as co-pays, deductibles, glasses, prescriptions, chiropractic and dental care.
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Pacific Administrators

7. Child/Dependent Care FSA
Child care expenses up to age 13;
Or, care of a dependent that is physically/mentally incapable of caring for him/herself;
The expense must be work related;
Maximum exclusion is $5000 per year for one or more dependent;
Remember that you can not claim the child care credit if you pre tax the expense.
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Pacific Administrators

8. Pacific Administrators
Health Care FSA
You can include expenses for you and your family, regardless of the health plan they may be enrolled in.
Estimate the typical out of pocket expenses you will incur during the plan year. Maximum exclusion is $3000.
Do not include expenses that would be for cosmetic purposes (face lifts or teeth bleaching).
New in 2004, you can include many of the over-the-counter drugs/medicines (vitamins and supplements are ineligible)
As with all benefit plans, this is intended to be a summary. Please see plan details outlined in the informative guides provided to your employer. In addition, your plan summary description should be reviewed.
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Pacific Administrators

9. Pacific Administrators
How the Plan Works
Once a year you determine the amount you would like to elect for each Flexible Spending Account.
The amount you elect is divided by the number of pay cycles you have, and withheld in equal amounts throughout the plan year.
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Pacific Administrators

10. Pacific Administrators
Getting Reimbursed
As you incur eligible expenses for services that have been rendered, submit a copy of the bill, invoice, EOB or other statement in the voucher envelopes provided.
Reimbursement requests should be processed within a few days of the following payroll cycle.
Your flex check can be a “direct deposit” (form on back of enrollment form) or standard check.
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Pacific Administrators

11. Reimbursement Details
The Dependent Care FSA will reimburse you up to the balance in your account.
The Health Care FSA will reimburse you up to the amount you’ve elected for the plan year, regardless of account balance.
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Pacific Administrators

12. Pacific Administrators
Important Details
You may only enroll during open enrollment, or upon initial benefits eligibility.
You are enrolling for the plan year, all expenses must be incurred within the plan year.
Once you’ve enrolled, your election amounts can not be stopped or changed unless you experience a qualifying “status change.”
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Pacific Administrators

13. Pacific Administrators
More Details….
Use it or lose it – unused amounts are forfeited, so consider your election amounts carefully.
By taking advantage of the plan, you’ll pay less in payroll taxes. This may result in a nominal reduction in your eventual Social Security Benefits.
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Pacific Administrators

14. Pacific Administrators
Next Steps
Review the packets provided – they provide full details and worksheets to assist you.
Complete and submit your enrollment form.
If you are already on the plan and are re-enrolling, a custom form will be provided to you to make enrollment even easier.
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Pacific Administrators

15. Pacific Administrators
Contact Information
The plan recordkeeper is Pacific Administrators. They can be reached by:
Telephone
Fax
Please call if we can answer any questions!
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Pacific Administrators

16. Pacific Administrators
Q & A’s
Will I be taxed on reimbursements?
No. Reimbursements are tax free!
Can I include expenses for my family?
Yes, expenses for your spouse and dependents are qualified under the plan.
Can I enroll in the plan now and stop later in the year?
Generally no. When you enroll in the plan, it is for the entire plan year. You are not permitted to stop or change election amounts unless you experience a qualifying “change in status.”
12/1/2018
Pacific Administrators

17. Pacific Administrators
Q & A’s
How do I know what my account balance is?
You’ll receive a statement with each reimbursement and at the end of each month.
What if I change employment?
You may submit expenses for an extended period of time. See plan documents for details.
For full details and plan information, please refer to the Plan Documents and Summary Plan Descriptions.
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Pacific Administrators