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© 2007 PAYFLEX SYSTEMS USA, INC.
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Lincoln Public Schools
Plan Year:October 1, 2009 through August 31, 2010(2009-2010)
© 2007 PAYFLEX SYSTEMS USA, INC.
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What is an FSA?
Flexible Spending Accounts (FSAs)
Allows you to pay for certain out-of-pocket health care expenses with “pre-tax” dollars. This means you get a tax deduction for these expenses before you ever file your tax return.
You don’t pay Federal income or Social Security taxes on this money and, in most states, you don’t pay state taxes either. On average you will save about 30% on your total FSA contribution.
© 2007 PAYFLEX SYSTEMS USA, INC.
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What does this mean to you?
Decrease Taxable Income Increase Spendable Income
Tax Savings!
© 2007 PAYFLEX SYSTEMS USA, INC.
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FSA Savings - Example
Real world example: Let’s say someone in your family needs braces at an average
cost of $4,500. This is typically paid over the course of one or two years. If you put this money into a Health Care Flexible Savings Account you will save approximately $1,350 in taxes.
© 2007 PAYFLEX SYSTEMS USA, INC.
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Eligible FSA Expenses
Medical & dental deductibles, co-pays and co-insurance
Prescriptions
Over-the-counter medicines & supplies
Hospital expenses
Selected durable medical
Orthopedic devices
© 2007 PAYFLEX SYSTEMS USA, INC.
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Eligible FSA Expenses
Eye Glasses, contact lenses
Saline/cleaning solutions
LASIK surgery
Hearing aids and batteries
Orthodontic care
Chiropractic expenses/ co-pays
Insulin, syringes for insulin
© 2007 PAYFLEX SYSTEMS USA, INC.
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Eligible OTC Medications
Antacids Anti-fungal ointments Antiseptic ointments Cold & Allergy Throat Sprays Lozenges Nasal Sprays Cough Syrups Cough Drops Eye drops
Gas Relief Hemorrhoid medications Laxatives Motion-sickness pills Pain Relievers Arthritis Pain Back / Head Pain Sleep Aids Stop smoking
gums/patches Vapor rubs
© 2007 PAYFLEX SYSTEMS USA, INC.
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Ineligible Healthcare Expenses
Anti-Bacterial Soaps Acne Treatments Dandruff Shampoo Dry Skin Creams/Treatments Foot Care Products Hair Loss Treatments Electrolysis – hair removal Cosmetic surgery Teeth Bleaching
Mouthwash Suntan /Sunscreen Lotion Dietary Supplements Supplements Varicose veins treatment Tattoo removal Herbal supplements Child birth classes
© 2007 PAYFLEX SYSTEMS USA, INC.
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Calculating Your Contribution
Determine out-of-pocket expenses that recur every year for you and all of your dependents.
Prescriptions, over-the-counter medicines, etc. Braces Routine doctor visits – co-pays/non covered visits
Estimate out-of-pocket expenses that you plan to incur during the plan year (e.g., laser surgery, extra glasses, acupuncture)
Use our expense planning worksheets to assist you in determining your annual contribution (available at www.payflex.com)
© 2007 PAYFLEX SYSTEMS USA, INC.
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Special IRS Plan Rules
Once you establish your plan year contribution, you may only change it if you experience a “life event” change.
Qualifying events include: marriage, divorce, and death
Any amount left in your flexible spending account at the end of the plan year will be forfeited.
Even if you or another family member are covered under another health insurance plan, you can still participate in the PayFlex FSA plan.
© 2007 PAYFLEX SYSTEMS USA, INC.
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FSA Educational Tools
Comprehensive participant website Online FSA expense planning
calculator and worksheets Frequently Asked Questions Eligible FSA expenses Express Claims Web-based FSA tutorial Printable enrollment and claim forms
www.payflex.com
© 2007 PAYFLEX SYSTEMS USA, INC.
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www.mypayflex.com
Login: New user registration & login screenAccounts: Account Summary with balances, claims history and payroll transactionsDebit Cards: List of debit cards active in your account My Info: Username, password, security question & answer, email address and option for electing e-Notify to receive emails for processed claimsExpress Claims: To submit your claims during the plan year, print claims and instructions to fax claims. Express Claims promises 72 hour turnaround time for claims processing
Education Tools: FSA Tutorial, FAQ’s to help you use PayFlex services, savings calculator, and expense planning worksheetsFSA Calculator: Directs you to a site to calculate your medical care, prescriptions, dental care, eye care, and over-the-counter drugs as well as your potential savingsEligible/Ineligible Expense Items: A comprehensive list of IRS-eligible Health Care & Dependent Care expensesForms: Administrative forms and publications and IRS forms and publications including direct deposit forms and claim formsFAQs: Includes general questions as well as questions regarding filing claims, changing your election, health care, dependent care, flex debit card and grace period.
© 2007 PAYFLEX SYSTEMS USA, INC.
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FSA Education Tools
Online FSA tutorial Expense planning tools Enrollment & claim forms
www.mypayflex.com
© 2007 PAYFLEX SYSTEMS USA, INC.
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Frequently Asked Questions
How does an FSA account work?
You estimate the amount you will spend on out-of-pocket health care expenses
You decide how much you wish to set aside into your FSA Health Care account
The amounts you wish to set aside into your accounts will come out of your paycheck (on a pretax basis) in equal amounts each pay period
As you incur health care expenses throughout the year, you can submit a claim form along with documentation of your expenses OR file your claims online using our Express Claims
You will be reimbursed via check or direct deposit
© 2007 PAYFLEX SYSTEMS USA, INC.
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Frequently Asked Questions
How much can I put into my FSA Account? Health Care account- $4000 for LPS Dependent Care account- $5,000 maximum per plan year
per the IRS
How often can I enroll? Annually – new employees can join off cycle
How much can I expect to save with and FSA? This depends on your tax bracket but on average about
30% of your total contribution/election.
© 2007 PAYFLEX SYSTEMS USA, INC.
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Frequently Asked Questions
Do I have to save and turn in my receipt? Yes. You can file your claims via fax, mail or online
through our Express Claims service. Express Claims makes it easy to submit your claim and in most cases your claims are processed within 1 to 2 days.
If I don’t use the money in my account do I lose it? Yes. You must spend all the money in your account by
the end of the benefit year.
© 2007 PAYFLEX SYSTEMS USA, INC.
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Dependent Care
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Dependent Care Expenses
Expenses necessary for you and, if married, your spouse to work
Child Care or Adult Day Care Expenses
Care for children under 13 or incapable of support
Care for adult dependent incapable of self care
© 2007 PAYFLEX SYSTEMS USA, INC.
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Qualifying Child Care Providers
Private Sitter
Licensed Day Care Provider
An in-home provider as long as the care provider is not your child under age 19, or someone you claim as a dependent for income tax purposes
Summer camps, except overnight camps
Tuition considered a day care expense through preschool
© 2007 PAYFLEX SYSTEMS USA, INC.
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Filing Paper Claims
Complete a claim form and submit to PayFlex via mail or fax
Include itemized statement or an Explanation of Benefits (EOB) statement showing your out-of-pocket expense
File paper claims as often as you wish (Remember, claims incurred during your plan year must be filed by March 31, 2008)
Claims can be direct deposited to a checking or savings account
© 2007 PAYFLEX SYSTEMS USA, INC.
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Express Claims: filing claims online
Go to www.mypayflex.com Login with your Username & Password, if first time user, please
register for an account Once you are logged in, the Accounts screen will appear, then select
Express Claims on the right side Select the account through which you wish to file a claim Enter your claim information: date of expense, type of expense and
the amount of expense and click the Next button Verify your claim and print your claim Fax claim and itemized receipts to (866) WEB-CLMS
Note: Itemized receipts must include date of purchase, descriptions of purchase, amount of purchase, name of merchant and if a health care claim we will also need the name of the patient.
© 2007 PAYFLEX SYSTEMS USA, INC.
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Communication Services
e-Notify - provide us with your e-mail address and you will receive an electronic receipt for paper claims that you submit, letting you know we have processed it. Sign up for e-Notify at www.payflex.com!
Year-end notification- reminder to use your remaining account balance before the end of the plan year.
© 2007 PAYFLEX SYSTEMS USA, INC.
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PayFlex Contact Information
Please contact us with any questions!
PayFlex Systems USA, Inc.
700 Blackstone Centre
Omaha, NE 68131
Toll-free: (800) 284-4885
Website: www.payflex.com
© 2007 PAYFLEX SYSTEMS USA, INC.
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Thank Youwww.payflex.com