Flexible Spending Account

The Flexible Spending Accounts allow you to reduce your taxable income by paying for out-of-pocket health care and dependent day care expenses with before-tax dollars. Since these accounts are to be used for predictable expenses, careful planning should help you avoid any forfeiture.

Healthcare Spending Account (HCA)
This account helps pay for out-of-pocket expenses that are not paid for by your medical, dental, or vision plan.

You make before-tax deposits (via payroll deduction) to your account.

You can deposit from $100 to $5,000 per year ($3.85 - $192.30 per biweekly pay period).

Using the debit card provided, you pay for expected expenses – tax-free. Due to IRS regulations, all HCA receipts,including debit card receipts, MUST be submitted to Ceridian for verification.

All expenses must be incurred during the plan year. Once your employment terminates or you change to non-benefit eligible status, your “plan year” will end effective the last day of the month in which the change occurred.

HCA IRS Rules
The Internal Revenue Service governs spending accounts and the following rules apply:

Any unspent balance at the end of the year must be forfeited.

Your deposit amount cannot be changed, stopped or started during the year for any reason, even if you have a change in family or job status.

The IRS does not recognize spouse-equivalent status. Therefore, you cannot be reimbursed for a domestic partner’s or domestic partner’s child’s health care expenses.

Spending account balances do not earn interest.

Dependent Care Spending Account (DCA)
You can use a dependent care spending account to make before-tax deposits to be reimbursed for expenses for dependent care expenses so that you or, if you are married, you and your spouse can work.

You make before-tax deposits (via payroll deduction) to your dependent care spending account.

You can deposit from $100 to $5,000 per year ($3.85 - $192.30 per biweekly pay period).

	In some cases, your maximum annual contribution may be less than $5,000. Refer to the Employee Benefit Guide for details.

You pay the bill and then submit a claim form for reimbursement to Ceridian.

You must include an original receipt from your dependent care provider and report the provider’s taxpayer ID number or Social Security number on your claim form.

DCA Eligible Dependents
The DCA can only be used to reimburse expenses for the care of eligible dependents:

Children under age 13 who qualify as dependents on your federal income tax return. If a child reaches age 13 during the plan year, the benefit will no longer be effective.

Other qualifying family members who are physically or mentally incapable of caring for themselves and who qualify as dependents on your tax return.

DCA Qualifying Care

The care must be necessary so that you or your spouse can work, actively look for work or attend school full-time.

Care can be given in a private home (including your own) or in a day care setting.

Overnight camp expenses are not reimbursable.

Homes and centers caring for more than six people must meet state and local license requirements.

You may also use the account if your spouse is disabled or a full-time student for at least five months during the year.

DCA IRS Rules
The Internal Revenue Service governs spending accounts and the following rules apply (see IRS Publication 503 for further specifics):

Any unspent balance at the end of the year must be forfeited.

If you use the DCA account, you cannot take the entire IRS childcare tax credit at the end of the year.

Your deposit amount cannot be changed, stopped or started during the year for any reason, even if you have a change in family or job status.

Spending account balances do not earn interest.

The IRS does not recognize spouse-equivalent status. Therefore, you cannot be reimbursed for a domestic partner’s or a domestic partner’s child’s care.

Helpful Links
Ceridian website
Ceridian - 2008 Claim Forms