What happens if an employee leaves the company?
The employer must notify FlexBank promptly so that deposits will no longer be credited to the employee’s account and reimbursement requests will be limited to claims incurred prior to termination. If applicable, it is your responsibility to send a COBRA notice enabling the employee to continue his health FSA. Please note: Health Care (medical, vision, […]
Must requests for reimbursement be submitted by the last day of the plan year
No. Participants have up to 90 days after the end of the plan year to make requests for reimbursement.
What happens to amounts left over in an employee’s account if they have not been used during the plan year?
Amounts not used during the plan year cannot be returned to an employee. These forfeitures go to the employer. Most employees individually do not leave much money in their accounts. There will, however, be amounts left which may be used by the employer to offset plan costs.
How are requests for reimbursement made?
Throughout the year, employees may request reimbursements by completing a claim form and attaching appropriate receipts showing that eligible expenses have been incurred. These can be mailed, faxed, scanned/emailed to Claims@FlexBank.net or uploaded securely to the FlexBank mobile site. FlexBank reviews and pays claims daily. The employee may be reimbursed via check or direct deposit. […]
Are all taxes avoided on earnings deposited to a Flexible Spending Account?
Employers do NOT match Social Security, Medicare or pay Workers Compensation premiums (in Ohio) on contributions their employees make to the Plan. Tax savings to the employer will average 8% of contributions made. Employees do not pay Social Security, Medicare, Federal, State and Local (in Ohio) taxes.
Must an employee’s full annual election be available for reimbursement at any time during the year or are reimbursements only made as monies are withheld?
IRS rules for a Health Care Reimbursement Account require that the employer make the full annual election available for reimbursement throughout the year regardless of how much an employee has contributed. This rule has caused some concern by employers offering Flex plans. The objection to this rule, however, has turned out to be more emotional […]