Human Resources
Flexible Spending Account (RIC)
Program Basics
The benefits of Flexible Spending Accounts are...
- your taxes will decrease
- your net take-home pay will increase
Participants in FSA are reimbursed for up to $2,500 ($3,000 effective with Plan Year 2008) in eligible health expenses and $5,000 in eligible dependent care expenses. There are 5 simple steps to complete in order to participate in FSA. Please contact us if you have any questions. The example below shows how an employee saved $602 in taxes one year.
Without Flexible Spending |
With Flexible Spending |
Flexible Spending Benefit |
|
| Gross Income | $45,000 |
$45,000 |
|
| Expenses run through Flexible Spending | 0 |
-$2,000 |
|
| Taxable Income | $45,000 |
$43,000 |
|
| Federal Tax* | -3,563 |
-3,238 |
325 |
| State Income Tax* | -1,848 |
-1,723 |
125 |
| FICA | -3,442 |
-3,290 |
152 |
| Income After Taxes | $36,147 |
$34,749 |
|
| Expenses not run through Flexible Spending | -2,000 |
0 |
|
| Your Spendable Income | $34,147 |
$34,749 |
$602 |
This employee could reduce taxes by $602 by using the Flexible Spending benefit! |
|||
*Assumes married with 2 allowances.
Follow these 5 simple steps
In order to take advantage of the Flexible Spending Account (FSA) benefit:
1. |
Estimate your family's covered health and/or dependent care expenses |
View healthcare worksheet View dependent care worksheet |
2. |
Enroll |
View enrollment information Download enrollment form |
3. |
Receive covered services (dependent care claims require proof of payment for services) |
View list of covered services in the Summary Plan Description |
4. |
File a claim by mail or fax to ASI |
View claim form sample Download claim form |
5. |
Receive reimbursement by check or by direct deposit into your bank account |
As designated on your enrollment form |