Flexible Spending

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 It Works
Let's assume you are a married male, aged 35, and 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. Here is an example without flexible compensation:
  • Gross salary = $1800
  • Less:
    • Tax at 20% = $360
    • FICA at 7.65% = $137.70
    • Child care = $100
    • Medical expenses = $25
  • Net spendable income = $1,177.30
Here is an example with flexible compensation:
  • Gross salary = $1800
  • Less:
    • Child Care = $100
    • Medical expenses = $25
  • Taxable salary = $1675
  • Less:
    • Tax at 20% = $335
    • FICA at 7.65% = $128.10
  • Net spendable income = $1,211.90
The flexible compensation will save you an extra $34.60 a month!

Payable Items Through Flex
  • Dependent Care Expenses
  • Non-reimbursed Medial and Dental Expenses
  • Group Health Premium
  • Group Dental Premium
  • Vision Premium
Cost
The cost is nothing because the county will administer this program itself, so there is no administrative charge to the employee.
Employees use payroll deductions to contribute to the plan. The county also matches the first $100 of flex you put into your plan.

Paid Out Reimbursements
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. The drawback of this is that 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.

IRS Requirement
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.

Getting 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
Limiting Action Amount
Medical Reimbursement Account $2,500
Dependent Care Account
Married, Filing Jointly $5,000
Married, Filing Separately $2,500

Your flex account remains open for 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 and 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 and 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. Transportation, including taxi, plane, ambulance, actual auto expenses. In lieu of actual expenses, auto expenses can be calculated at 23.5 cents per mile
  18. Crutches, both rental cost or purchase price
  19. Cost of maintaining medical devices, including contact lens solutions, hearing aid batteries, and wheelchair tires
For specific questions regarding your flexible spending account, contact Jamie in Human Resources at 307-687-6355. View the medical expense voucher online.

Additional Information
More information regarding benefits can be found in the Personnel and Benefit binders as well as by contacting the Human Resources 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.