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scgov.net - Employee Health and Benefits
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Flexible Spending Accounts |
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The IRS cafeteria plan rules allow Sarasota
County Government to offer eligible employees a way to save income and
FICA taxes by establishing pre-tax “savings” accounts through payroll
deduction for the purpose of funding qualified expenses when incurred
during the plan year. Dependent care and health care expenses are the
two types that qualify. The Dependent care and Health care
flexible spending accounts are administered by Aetna. |
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Effective 01/01/2011
you will no longer be able to claim over the counter (OTC)
expenses
against your medical FSA. Some provisions apply contact Aetna
directly for details. |
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Dependent
care flexible spending account
This account can be established to
cover expenses for the care of qualified dependents. From this account,
participants can be reimbursed for expenses related to day care for
pre-school children, after school care for older children and qualified
elder care expenses with dollars deducted from gross pay, which are not
subject to federal income or social security taxes. SCG will contribute
25 percent to participants FSA accounts to assist with childcare
expenses, subject to the $5,000 annual maximum contribution established
by the IRS. For example, if an employee elects to
contribute an annual amount of $4,000 the county will contribute $1,000,
for a total annual amount of $5,000. |
Health care
flexible spending account
This account can be established by
eligible (full-time) employees who expect to incur health care expenses
for themselves or their dependents during the portion of plan year for
which they are eligible. Similar to the dependent care account, the
advantage of the health care flexible spending account is that expenses
reimbursed through the account are not subject to federal income or
social security taxes. A distinct advantage of the health care account
is that the entire amount elected for the year is available for claims
reimbursement a participant’s first day of eligibility during that plan
year. SCG contributes 5 percent to participants' Health Care FSA accounts as an
incentive to participate, subject to the $5,000 annual maximum
contribution established by the IRS. |
For
additional information about FSA visit
www.aetnafsa.com
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