1. Goodwill-Easter Seals 2016 Annual Open Enrollment Flexible Spending Account

2. 2016 Annual Enrollment Benefits Available to Employees 20+ Hours per week  Flexible Spending Account –NEW Bicycle Account 2016 Plan Year Overview

3. Flexible Spending Account 10

4. 2016 Annual Enrollment  Benefit Extras is the administrator (no change)  Plan Year is January 1 – December 31  Four Spending Accounts: –Full Scope Health Care ($500 Deductible Plan)  $2,500 Annual Limit; $500 annual rollover provision –Limited Scope Health Care ($2600 Deductible Plan)  $2,500 Annual Limit; $500 annual rollover provision –Dependent Day Care  $5,000 Annual Limit –Transportation  Transit Pass - $130 / month  Qualified Parking - $250 / month  Elections can be changed monthly  NEW – Bicycle Account Flexible Spending Plans

5. 2016 Annual Enrollment  No taxes paid on Flexible Spending Account contributions - - (No Federal, State, FICA, or Medicare)  Tax savings range from 25% to 30% on every dollar contributed  No additional tax filing requirements  Allows you to take care of elective medical expenses that may have been delayed for years (i.e. crowns, bridges, orthodontia, laser eye surgery, etc.)  Generally you may not change your election during the plan year unless there is a qualifying event. –Change in employment status of you or your spouse (full-time to part-time or vice versa) –Change in status (marriage, divorce, birth, unpaid leave of absence) 4 FSA – Pros & Cons

6. 2016 Annual Enrollment Annual Salary: $30,000 Out-of-Pocket Medical/Dental Expenses: $1,000 Out-of-Pocket Dependent Care Expenses: $3,000 FSA - Tax Savings Example Without FSAWith FSA Gross Pay$30,000$30,000 FSA Contribution-$0-$4,000 Taxable Income$30,000$26,000 Taxes (Fed, State, FICA)- $9,000- $7,800 Out-of-Pocket Expenses - $4,000-$4,000 Reimbursement from FSA+$0+$4,000 Net Annual Income$17,000$18,200 Savings = $1,200 annually

7. 2016 Annual Enrollment Eligibility Requirements Include:  Care must be for one or more qualifying individuals  A qualifying individual is usually a tax dependent  Expenses must be for you and spouse to work, look for work, or go to school full-time  Maximum annual election is $5,000 per household  Election may not exceed lowest earned income Requirements also include:  Must be for children under age 13  Can also be used for adult child or spouse physically incapable of caring for him/herself and tax dependent  Amounts paid for “educational care” must be for pre-kindergarten or younger ages  Provider of care must report the income by providing employee: name, address, and Tax ID or SS#  Employee reports on tax form whether FSA or Tax Credit is used 6 Dependent Care Account

8. 2016 Annual Enrollment  Unlike the other FSAs, you do not contribute to this account  GES reimburses you for expenses for the purchase, improvement, repair or storage of a bicycle used to commute to work  You are eligible to be reimbursed up to $20/month  Upon the close of the calendar year, you must certify (on a form available from GES) the number of months during the year that you regularly used a bicycle for a substantial portion of travel between your residence and place of employment.  You may receive the Bicycle Account Reimbursement for a given month if you have not received other benefits from the Transportation Plan that month (e.g. transit pass or qualified parking benefits) NEW: Bicycle Account

9. 2016 Annual Enrollment  FSA Full Scope/Limited Scope Health Care and Dependent Care: –Dependent Care expenses must be incurred prior to 12/31 –Health Care Account balances that exceed $500 after 12/31 are forfeited –You have until March 31 to submit claims incurred by 12/31 –Mid-Year changes are limited to qualified status changes and special enrollments (i.e., divorce, birth or adoption of a child) Changes must be elected/reported within 31 days  You may “rollover” up to $500 into the Health Care Spending Accounts  Must re-enroll in the flex accounts each year  Benny Cards -- don’t throw your debit card if you are currently enrolled in FSA, they are good for several years. Flexible Spending Plans – Reminders

10. To get your questions answered, sign up for your one-on-one meeting with the GES Colonial Life representatives. Additional Contacts for questions on GES Benefit Plans: HealthAdvocate: 866-695-8622 Benefits at Goodwill-Easter Seals: 651-379-5924 or benefits@goodwilleasterseals.org Questions?