Flexible Spending Account (FSA) Sourcebook 2019-20

Flexible Spending Account (FSA) Sourcebook 2018-19

What is it?

Flexible Spending Accounts (FSA) are an IRS approved, employer sponsored benefit that allows you to pay for eligible medical and/or dependent care expenses on a pre-tax basis. You authorize per pay period deposits to your FSA from your salary before taxes. As you incur eligible expenses, you request tax-free withdrawals from your accounts to reimburse yourself. There are two kinds of FSAs:

• Medical expense FSA
• Dependent care FSA

For a list of eligible expenses, please go to PayFlex.com

 

Why do I need it? TO SAVE MONEY! An FSA saves you money by reducing your taxable income. Your contribution to your FSA is deducted from your salary on a pre-tax basis. Over a year's time, you will most likely spend some of your salary on medical or dependent care expenses. You can save money on taxes by contributing that amount directly into your Flexible Spending Account.

Unless your itemized medical expenses exceed 7.5% of your adjusted gross income, you cannot claim them on your IRS Form 1040. But you can save taxes by paying for your out-of-pocket medical expenses not covered by your health benefits plan through a tax-free Medical Expense FSA.

What is it at Mason?

Medical Spending Accounts may be used to pay for expenses that are not covered under your medical, dental, vision and prescription plans. Items such as co-payments, deductibles, some over-the-counter medications that you would otherwise pay for out of your pocket with after-tax dollars can be paid for with your medical reimbursement account. This will not only save you money, but will give you access to your entire reimbursement account on the first day of the fiscal year. The maximum annual amount which may be put in a medical reimbursement account is $2,700. You will receive an Elite Visa Benefit Card, which may be used to pay for eligible health expenses. Please note that you may be asked to provide supporting documentation even when you use your Elite Visa Benefit Card.

 

The maximum deduction per pay period for 12-month employees is $112 and $150 for 9-month faculty.

 

NOTE: For COVA HealthAware participants, please remember that your Health Reimbursement Arrangement (HRA) pays first and then your FSA.

 

Dependent Care Spending Accounts may be used to reimburse yourself for expenses incurred in the care of your child (age 12 years or under), disabled spouse, elderly parent, or other dependents who are physically and/or mentally incapable of self-care so that you (and your spouse) can work or actively seek work. The maximum annual amounts which may be put in a dependent care flexible reimbursement account are:

 

• $2,500 for an employee who is married and is filing a separate tax return.
• $5,000 for an employee who is married and is filing a joint return or who is single with dependents.

The maximum deduction per pay period for 12-month employees is $208 and $277 for 9-month faculty.

 

For both medical and dependent care spending accounts:

 

• The minimum payroll deduction is $10 per pay period.
• A monthly administrative fee of $2.10 ($2.80 for 9-month faculty) will be deducted from your salary on a pre-tax basis for one or both accounts (Medical and/or Dependent Care). Whether you have one account or both, the fee will be $2.10 (or $2.80) per month.
• Enrollment is not automatic and is only for the current plan year. If you wish to participate next plan year, you must re-enroll during the annual open enrollment period.
• Employees may enroll within 30 days of their hire date or within 60 days of a life event change.
• "Use It or Lose It" Rule - Any money contributed to these accounts during the plan year must be used during the plan year -- any balances remaining are forfeited. Employees may file reimbursement claims until 90 days after the end of the plan year.

How to submit a claim?

You may file a claim to request reimbursement of your eligible expenses by completing a claim form and submitting it along with supporting documentation to PayFlex. The easiest way to do this is to log into your account on the PayFlex website. You may also submit a claim by filling out the claim form found on our Forms Page. Please contact PayFlex at 855-516-8595 for assistance.

Note: for eligible expenses incurred during the 2018-19 plan year, please submit the claims to Anthem. Claim forms are found on our Forms Page For assistance, please call Anthem FSA at 877-451-7244.

For Separating Faculty and Staff

You may be reimbursed for eligible FSA expenses incurred through the end of the month in which you separate. You have a three-month run-out period from the end of your coverage period (end of the month in which you separate) to apply for reimbursement.

 

Insurance is a way to mitigate some of the risks faced in every day life and helps provide financial security and protection for you and your family. Benefitted employees (50% appointment time or greater) have access to a range of insurance products including:

• Life Insurance
• Long-Term Care Insurance
• Disability Insurance

 

 

Leave permits faculty and staff to take approved time off from their positions. It includes annual leave, sick leave, family & personal leave (VSDP participants only) and holidays, as well as a range of other topics such as the Family & Medical Leave Act (FMLA), military issues, Short and long term disability, and leave without pay.

A negative leave balance will stop any additional leave accrual and payment back to the University will be required before any changes in employment status. Leave can recommence once payment is received.

For more information on leave topics, move your mouse over the "Topics" list above and select the topic you would like to know more about from the drop-down menu.

Optional Plans

Optional plans are available to salaried employees and include savings bonds and the Virginia Education Savings Trust (VEST). VEST and the Virginia Prepaid Education Program (VPEP), offer families the opportunity to participate in an IRC Section 529 qualified state tuition program with both prepaid and savings trust investment options to cover future costs of college fees and tuition.

• Savings Bonds
• Virginia Education Savings Trust

How close are you to retirement?

Just beginning My career Mid-point in my career Within 10 years Within 5 years Within 1 year I'm retired

I'm injured at work. What should I do?

If you are seriously injured, seek medical treatment immediately.

Next steps:

• Inform your supervisor immediately
• Complete the First Report of Accident form
• Complete the Panel Physician Selection form
• Contact the Benefits office at 703.993.2600
• See your selected panel doctor if necessary and provide Benefits with all notes
• Notify your doctor that this is a possible workers' compensation claim. Provide them with the name and contact information for the state's workers' compensation (WC) vendor:

  MC Innovation
  P.O Box 1140
  Richmond, VA 23218
  (804) 649-2288
  

• Provide your supervisor and Benefits with a copy of doctor's notes
• Report all medical appointments and physical therapy visits to your Benefits Administrator in advance
• Follow your doctor's recommendations
• Get well
• Keep in contact with your supervisor, Benefits and your doctor
• Forward any bills related to your workers' comp injury to Benefits
  • Fax: 703.993.2601
  • Email: benefits@gmu.edu

Click here for more information on Workers' Compensation.

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Supervisors

What to do first:

• Arrange for any needed medical care for the employee
• Complete the supervisor portion of the First Report of Accident

During the claim:

• Maintain contact with the injured worker and the Benefits Administrator
• Forward all doctor's notes to the Benefits office
• Support the injured employee
• Think creatively if the employee requires modified or light duty to assist him or her in returning to work
• To avoid future accidents, schedule any training or make workplace corrects as needed

Click here for more information on Workers' Compensation.