How an FSA Works You are responsible for projecting the eligible - - PowerPoint PPT Presentation

How an FSA Works

You are responsible for projecting the eligible expenses that you will incur during the plan year to determine your election amount You agree to have that amount taken from your paycheck in equal installments on a pre-tax basis during the plan year You use the funds to reimburse eligible expenses There are two types of FSA Accounts: Health Care Spending Account (HCSA) & Dependent Care Assistance Program (DCAP) You may elect to participate in one or both types of accounts You must re-enroll every year and make a new election. You are not able to change your election amount within the plan year unless you experience a qualifying life event Per IRS regulations you forfeit any remaining balances at the end of the plan year

• Use our online tools to make a careful decision on your annual election amount
• You have additional time at the end of the plan year to spend your balance

Example of Tax Savings Through an FSA

Without FSA SA With FSA SA Enrollm lment An Annual l Earn arnings $3 $30,000 $3 $30,000 Health Care Reimbursement Account Contribution $0.00

• $2,000

Dependent Care Assistance Account Contribution $0.00

• $4,000

Total al Pr Pre-Tax x Dedu Deduction $0 $0.00 $6 $6,000 Taxa axable le Sala alary $3 $30,000 $2 $24,000 Total Taxes Paid (25%)

• $7,500
• $6,000

Net Sala alary $2 $22,500 $1 $18,000 Exp xpenses (Po Post Tax) ax)

• $6,000

$0.00 Spendable le Inc ncome $1 $16,50 500 $1 $18,000 Net Sav avings $0 $0.00 $1 $1,500 Approximately $25 is saved for every $100 contributed pre-tax to an FSA account Assumptions for this example:

• Employee earns $30,000 per year
• Has $2,000 annual expense for out-of-pocket medical care (RX, copays, glasses, etc.)
• Has $4,000 annual expense for dependent care assistance (childcare expenses for

children under 12)

Benefits of an HCSA

You increase your spending power by receiving a portion of your income pre-tax You can also easily budget for higher cost health care expenses

You can spend your entire election at any point during the plan year, your full HCSA election is preloaded It’s like an interest-free loan! You can reimburse all eligible family members’ eligible expenses, even if they’re not covered on your medical plan You can draw funds directly from your HCSA via the debit it card we send you The debit card linked to your flexible spending account works just like a normal credit card

Guidelines on Who can use the Plan for Eligible Expenses

If you are considered a GIC Benefit-Eligible Employee, you are eligible for the FSA benefit You do not need to enroll in a GIC medical plan to enroll in the medical FSA Your legally married spouse (they do not need to be enrolled in your medical plan)

Plea Please Not

• te: A domestic partner’s or ex-spouse’s expenses are not eligible for reimbursement per federal regulations

Please refer to your GIC Handbook for additional information on Eligibility

Your tax dependent(s) (they do not need to be enrolled in your medical plan)

HCSA Eligible Expenses

Medical Plan Cost Sharing

• Office Copays
• Hospital Copays
• Prescription Copays
• Deductibles

Dental

• Fillings
• Root Canals
• Implants
• Crowns
• Orthodontia

Vision

• Prescription Glasses
• Prescription Sunglasses
• Contact Lenses & Solution
• Vision-correction Surgery

Over-the-Counter*

• Medical Equipment
• Bandages & Splints
• Crutches
• Much More!

*See Eligible Expense List

See our Eligible Expense list on benstrat.com/gic-fsa for more examples * Use the mobile app to easily scan items for eligibility

Please Not

• te: The HCSA Contribution Limits for the GIC 2021 Plan Year are $250 Minimum/ $2,750 Maximum

Benefits of a DCAP

Funds in a DCAP may be used towards expenses for the care of your child(ren) while you (and your spouse, if married) are at work or attending school full time

You can pay your childcare related expenses with pre-tax dollars Eligible Dependents are children up to age 13 or tax dependents of any age who are mentally or physically incapable of self-care and reside with you DCAP funds are not pre-loaded, you can’t access any more than you’ve had withheld from your paycheck at any point in the year You are only able to use funds after they have been taken out of your paycheck You cannot submit for expenses with dates of service in the future, they will not be paid

Please Please Not Note: e: You are re not

• t able to use your debit card for DCAP. But you can file a claim through the mobile app by taking

a picture of your receipt!

DCAP Eligible Expenses

Daycare Centers Babysitters (Non-Family members; In & out of your home) Before & After School Programs Vacation Day Camps

Please Not

• te: The DCAP Contribution Limit for the GIC 2021 Plan Year is $5,000 Maximum; $2,500 if single or married filing

separately (Max per Pay Period: $96.15 Weekly; $192.30 Biweekly) Tui Tuition, , ki kindergarten, and and ove

• vernight cam

amp ex expe penses ar are not

• t el

eligible le See our Eligible Expense list on benstrat.com/gic-fsa for more examples

Plan Year Details Plan Year July 1, 2020 through June 30, 2021

Open Enro nroll llment Pe Period Open enrollment dates are: Monday, Monday, April April 6, 6, 2020 2020 – Monday June 1, 1, 2020 2020 Enrollment Deadline: May ay 1st 2 2 ½ Month Gr Grace Peri Period Your deadline to incur eligible expenses during a grace period ends: September 15 Debit Card transactions after this date will only apply to the new plan year Cl Claim aims Fili ling Dea Deadli line Your deadline for filing claims for all reimbursements is: October 15 Use the Mobile app for easy claim filing Forfeiture Dat Date You forfeit any remaining balance as of: October 16 Keep spend dates and plan year in mind when making your annual election El Electio tion Calc lculatio ion Ass ssis istance: Review your Explanation of Benefits (EOBs), RX Copays, Daycare bills, Cost of summer day camp, what you spent in your prior year elections to select the right amount for your annual election. Visit our Expense Worksheet and Tax Savings Calculator for additional guidance!

Tax Savings Calculator Expense Worksheet

Enrollment is all Online –Portal Enrollment Opens 4/6/20

Re-Enrolling Portal User If you already have an account, login using your

• nline portal credentials.

Forgot Pas Password? Visit the online portal and click the corresponding link Already Enrolled; never used the Portal Visit the online portal and click New User to create your

• nline portal credentials

Newly Enrolling Use Electronic Form

1 4 2 3

1 2 3 4

e-Form for New Election (newly enrolling in plan)

Member Portal Login Page: benstrat.com/gic-fsa

Please Note: No

• pap

paper op

• ptio

tion is s av availa lable le

Mobile Account Access

The Benefit Strategies mobile application is available on iOS &

• Android. Download the app for your chosen device from the

Apple App Store or Google Play

✓Quickly check your account balance and important filing dates ✓Submit claims for medical and dependent care FSA ✓Capture the receipt the moment the transaction happens ✓Report a debit card as lost or stolen ✓Scan product bar codes to determine eligibility as qualified

medical expense

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Receipts

The IRS requires that we verify all debit card transactions used for eligible expenses which means you’ll need to save your receipt even if you swipe your card for the charge. Make sure your receipt contains the 4 D’s of Acceptable Documentation: 1. 1. Dat Date the expense was incurred 2. 2. Do Doctor or name of provider 3. 3. Do Doll llar amount of the expense 4. 4. Des Description of the expense(s) It’s easy to submit documentation for a claim right through our Mobile App, Online Portal, or Secure Email 1. 1. Swip wipe your ca card or purchase eligible expenses 2.

• 2. Tak

ake a a picture of your receipt with your phone 3.

• 3. Ge

Get an an ema email l notification requesting a receipt 4.

• 4. Up

Uplo load the the picture you took to your Mobile App or Online Portal

Please Not

• te: Cancelled checks, Credit card statements, and “balance forward” statements are not acceptable documentation

Debit Cards

The Benefit Strategies debit card provides easy access to HCSA and Commuter Choice* funds.

✓Debit cards are issued in sets of 2 ✓Cards are good for 3 years ✓A Free set of cards is issued to all enrolled HCSA participants ✓You can get an additional set of cards for $5.00. Fee also applies for

lost/stolen card replacement

✓Replacement and/or additional cards can be ordered via consumer portal

• r mobile app

✓Cards are issued in the employee’s name but a dependent can sign the

back of the card and use for eligible FSA expenses *Commuter Choice is a separate benefit. To learn more please visit benstrat.com/clients/commonwealth for Commuter Choice program details

Please Not

• te: DCAP funds cannot be accessed with the debit card – you must file a claim for DCAP reimbursement

HCSA SA New Enroll llee You’ll be getting a set of cards mid-June HCSA SA Re-enroll llment Keep your card! You’ll be getting a new set of cards when your current card expires. DCA DCAP Only ly Enroll llee No card. Download mobile for quick claim reimbursement! Co Commuter Cho Choice Only nly If you have a card but you’re skipping HCSA and only electing CC this year: Keep your card to use for commuter choice benefits

How Grace Period Claims Are Processed

Grace Period July 1st

st–September 15th

Between September 15th through October 15th debit card transactions will only pull from current plan year Expenses are paid from the prior plan year first; the claim will automatically split between plan years if the amount is higher than the prior year available balance The grace period will not apply to:

• Participants with a $0 account balance for the prior plan year
• Participants who did not have a prior plan year account

14

Prior year claims can be filed manually for expenses incurred prior to September 15th

Questions?

15

www.benstrat.com/gic-fsa/ Customer Rela lations

We’ve got you covered! Mon

• nday to

to Th Thursday: 8:00 am – 6:00 pm ET Fri Friday: 8:00 am – 5:00 pm ET Automated system available at all times Li Live Ch Chat*: benstrat.com/gic-fsa Tex Text-to to-Chat: 1-877-353-9442 Email il: commonwealth@benstrat.com *O *Our chat agen agents ar are not

• t bo

bots! Chat support is provided by our NH based Customer relations team

Information provided in this webinar was current at the time of recording. It is not intended to provide tax or legal advice but meant to be informational only. Examples provided may not apply to your specific situation and are provided only to illustrate how the plan works. Please consult a tax professional to understand your specific savings by participating in the FSA programs.