What is the Flexible Benefits Program?
This Flexible Benefits Plan allows employees to save tax dollars by setting aside funds to pay for qualifying health and/or dependent care expenses on a "before-tax" basis.
How does it work?
Let's assume you are a married male, 35, earning $1800 per month with a combined Federal income tax bracket of 20%. Your average monthly expenses for medical and child care are approximately $125. The number $1800 exists only as a starting point, a source from which taxes and other employee expenses are deducted.
Gross Salary |
$1800 |
Less: |
|
Tax (20%) |
$360 |
FICA (7.65) |
$137.70 |
Child Care |
$100 |
Medical Expenses |
$25 |
Net Spendable Income |
$1,177.30 |
Example: Without Flexible Compensation
Example: With Flexible Compensation
Gross Salary |
$1800 |
Less: |
|
Child Care |
$100 |
Medical Expenses |
$25 |
Taxable Salary |
$1675 |
Less: |
|
Tax (20%) |
$335 |
FICA (7.65) |
$128.10 |
Net Spendable Income |
$1211.90 |
Additional Monthly Income = $34.60
What can I pay through Flex?
- Dependent Care Expenses
- Non-reimbursed Medial and Dental Expenses
- Group Health Premium
- Group Dental Premium
- Vision (VSP) Premium
How much does it cost me?
Nothing...Because the County will administer this program itself, there is no administrative charge to the employee.
Where do the funds come from?
Employees use payroll deductions to contribute to the plan. The County also matches the first $100 of flex you put into your plan.
How are reimbursements paid?
As an expense occurs (medical expenses, child care, etc.) the employee presents a Flex Voucher with relevant bills or Explanation of Benefits Statement to the Flex Administrator. An account balance is maintained for each participating employee. Reimbursement checks will accompany employees' paychecks.
This sounds too good to be true! What's the catch?
Your social security benefits will be reduced because you are paying less to social security. Your social security benefits provide income if you become disabled, financial benefits to your dependents under a certain age if you die, and retirement benefits. Your benefits would be based on your taxable flex based salary of $1,685 per month instead of $1,800.
Is that the only catch?
No. The IRS requires that , in order for the plan to be qualified and expenses deducted from gross salary, each employee must use the amount in the flexible spending account by the end of the year or lose it. This "Use It Or Lose It" rule means that employees cannot take cash at year's end for amounts not used.
How do I get started?
Campbell County will have an enrollment period to sign up. Trained people will be available to work with you to help you use flexible compensation to get the most from your salary.
Annual Benefit Limitations |
|
| Medical Reimbursement Account | $3,700 |
| Dependent Care Account | |
| Married Filing Jointly OR | $5,000 |
| Married Filling Separately | $2,500 |
Your flex account remains open for sixty (60) days after your termination date or the end of the Plan Year to allow you a reimbursement of eligible expenses incurred prior to your termination date or the end of the plan year.
 |
FLEX DOLLARS |
The following list includes the most common items for which flex dollars may be used. Please refer to your Flex Book for a complete list of items.
| 1. | Treatment of alcoholism. |
| 2. | Birth Control Pills. |
| 3. | Costs for any medically required improvement to your home. |
| 4. | Chiropractors. |
| 5. | Contact Lenses - saline solution & cleaner. |
| 6. | Dental care including x-rays, prevention, restoration, extractions, braces, and dentures. |
| 7. | Doctor's fees. |
| 8. | Prescribed drugs and insulin. |
| 9. | Drug addiction treatment centers. |
| 10. | Eyeglasses, prescription sunglasses. |
| 11. | Employer sponsored medical and dental insurance premiums. |
| 12. | Laboratory fees. |
| 13. | Lodging up to $50 per day at a hospital, nursing home or other medical facility if for the purpose of medical treatment. |
| 14. | Nursing services when related to illness. Cannot be used for well baby checks. |
| 15. | Operations. |
| 16. | Psychoanalysis. |
| 17. | Legal sterilization. |
| 18. | Transportation, including taxi, plane, ambulance, actual auto expenses. In lieu of actual expenses, auto expenses can be calculated at .18 per mile. |
| 19. | Any specified charges for tuition fees that cover the cost of medical care for a student at a college or private school. |
| 20. | Crutches, both rental cost or purchase price. |
| 21. | Cost of maintaining medical devices, including contact lens solutions, hearing aid batteries and wheelchair tires. |
| 22. | Some Over-the-Counter Drugs (OTC) |
For specific questions regarding your flexible spending account, contact Gina in Human Resources at 687-6355.
Campbell County Medical Expense Voucher
More information regarding benefits can be found in the Personnel & Benefit binders as well as by contacting the HR Department. All benefits are subject to eligibility requirements and may change at any time. In the case of a difference between the above listed information and the master policies, the master policies will be controlling.