The Flexible Spending Account Program is administered by WageWorks. Complete all claims, inquiries, and online account access through the WageWorks administration platform.
Benefits eligible employees have the opportunity to pay for eligible health care and dependent care expenses on a pre-tax basis when enrolled in one or both of the offered flexible spending accounts (FSAs).
There are 2 types of FSAs available to eligible employees:
- Health Care Flexible Spending Accounts
- Dependent Care Flexible Spending Accounts
How Flexible Spending Accounts Work
Participants designate an annual amount at the beginning of the plan (calendar) year, up to the eligible maximum of $2,750 for 2020 for health care expenses and/or $5,000 for dependent care expenses. The amount designated is divided evenly by the number of pay periods during the year and deducted from employee paychecks over the course of the year on a pre-tax basis.
As employees incur qualified health or dependent care expenses, reimbursements for these expenses may occur from the accounts. Employees submit receipts with reimbursement claim forms directly to Lesley's plan administrator, WageWorks, for expenses. After verifying that the expenses are eligible, WageWorks will mail a reimbursement check to employee homes or deposit funds into your designated checking or savings account.
Contributions to Flexible Spending Accounts
To estimate the amount of money to be put aside in a flexible spending account, project health and/or dental expenses that will not be covered by a health or dental plan and/or eligible dependent care expenses for the upcoming year (for which tax credits will not be claimed).
Then, complete an FSA enrollment form(s) online. The total annual amount an employee elects to contribute to a FSA will be deducted from each paycheck in equal installments during the calendar year. Take care in choosing amounts for the accounts because any money not used by the end of the year will be forfeited, per IRS regulations. Monitoring the account(s) closely toward the end of the plan year helps ensure that you use all funds.
Automatic Approval for Some Expenses
WageWorks offers a Flex Debit Card to all Flexible Spending Account participants. The Flex Debit card is an alternative to paying out-of-pocket for FSA medical expenses. The Flex Debit Card does not always alleviate the need to substantiate your purchases or medical services. Many transactions may be automatically substantiated (and therefore will not require you to submit documentation) by using the debit card without any further action on your part.
Employees first pay any amounts owed to health care and dependent care providers. Once an employee pays an eligible expense, the employee files a reimbursement claim using the appropriate Reimbursement Request Form, provided that funds are available in the employee's FSA. With a health care FSA, the entire deferred amount is available immediately, however, for a dependent care FSA, reimbursement is only available up to the amount that has accrued in an employee's account.
Reimbursement checks are payable directly to employees once WageWorks receives a reimbursement claim form with attached documentation of expenses. Many employees submit claims on a monthly basis, though claims may be submitted at any time during the plan year and up to 3 months following the end of the plan year. Employees will receive an explanation of benefits from WageWorks upon reimbursement.
Account information, including balances, claims and other transactions, can be viewed via WageWorks. Statements showing all deposits and withdrawals, as well as account balances are available.
Participation and Enrollment
Employees who elect FSAs must enroll within 30 days from their date of hire or during the annual open enrollment period, which occurs in the fall of each year.
Changing or Stopping Your Contribution
Note that changes in the deduction amount of or cancellation are not allowed once enrollment is complete unless the employee incurs a qualified life event during the year. Your human resources representative can also help determine whether a circumstance may qualify as a qualified life event.