Goodwill-Easter Seals2016 Annual Open Enrollment

Flexible Spending Account

2016 Annual Enrollment

Benefits Available to Employees 20+ Hours per week

Flexible Spending Account– NEW Bicycle Account

2016 Plan Year Overview

Flexible Spending Account10

2016 Annual Enrollment

Benefit Extras is the administrator (no change) Plan Year is January 1 – December 31 Four Spending Accounts:

– Full Scope Health Care ($500 Deductible Plan) $2,500 Annual Limit; $500 annual rollover provision

– Limited Scope Health Care ($2600 Deductible Plan) $2,500 Annual Limit; $500 annual rollover provision

– Dependent Day Care $5,000 Annual Limit

– Transportation Transit Pass - $130 / month Qualified Parking - $250 / month Elections can be changed monthly NEW – Bicycle Account

Flexible Spending Plans

2016 Annual Enrollment

No taxes paid on Flexible Spending Account contributions -- (No Federal, State, FICA, or Medicare)

Tax savings range from 25% to 30% on every dollar contributed

No additional tax filing requirements Allows you to take care of elective medical expenses that

may have been delayed for years (i.e. crowns, bridges, orthodontia, laser eye surgery, etc.)

Generally you may not change your election during the plan year unless there is a qualifying event.– Change in employment status of you or your spouse

(full-time to part-time or vice versa)– Change in status (marriage, divorce, birth, unpaid leave

of absence)5

FSA – Pros & Cons

2016 Annual Enrollment

Annual Salary: $30,000Out-of-Pocket Medical/Dental Expenses: $1,000Out-of-Pocket Dependent Care Expenses: $3,000

FSA - Tax Savings Example

Without FSA With FSAGross Pay $ 30,000 $ 30,000FSA Contribution - $ 0 - $ 4,000Taxable Income $ 30,000 $ 26,000Taxes (Fed, State, FICA) - $ 9,000 - $ 7,800Out-of-Pocket Expenses - $ 4,000 - $ 4,000Reimbursement from FSA + $ 0 +$ 4,000Net Annual Income $ 17,000 $ 18,200

Savings = $1,200 annually

2016 Annual Enrollment

Eligibility Requirements Include: Care must be for one or more qualifying individuals A qualifying individual is usually a tax dependent Expenses must be for you and spouse to work, look for work, or go to school full-

time Maximum annual election is $5,000 per household Election may not exceed lowest earned income

Requirements also include: Must be for children under age 13 Can also be used for adult child or spouse physically incapable of caring for

him/herself and tax dependent Amounts paid for “educational care” must be for pre-kindergarten or younger

ages Provider of care must report the income by providing employee: name, address, and Tax ID or SS# Employee reports on tax form whether FSA or Tax Credit is used

7

Dependent Care Account

2016 Annual Enrollment

Unlike the other FSAs, you do not contribute to this account

GES reimburses you for expenses for the purchase, improvement, repair or storage of a bicycle used to commute to work

You are eligible to be reimbursed up to $20/month Upon the close of the calendar year, you must certify (on a

form available from GES) the number of months during the year that you regularly used a bicycle for a substantial portion of travel between your residence and place of employment.

You may receive the Bicycle Account Reimbursement for a given month if you have not received other benefits from the Transportation Plan that month (e.g. transit pass or qualified parking benefits)

NEW: Bicycle Account

2016 Annual Enrollment

FSA Full Scope/Limited Scope Health Care and Dependent Care:– Dependent Care expenses must be incurred prior to 12/31– Health Care Account balances that exceed $500 after 12/31 are

forfeited– You have until March 31 to submit claims incurred by 12/31– Mid-Year changes are limited to qualified status changes and special

enrollments (i.e., divorce, birth or adoption of a child)• Changes must be elected/reported within 31 days

You may “rollover” up to $500 into the Health Care Spending Accounts

Must re-enroll in the flex accounts each year Benny Cards -- don’t throw your debit card if you are

currently enrolled in FSA, they are good for several years.

Flexible Spending Plans – Reminders

To get your questions answered, sign up for your one-on-one meeting with the GES Colonial Life representatives.Additional Contacts for questions on GES Benefit Plans:• HealthAdvocate: 866-695-8622• Benefits at Goodwill-Easter Seals: 651-379-5924 or

benefits@goodwilleasterseals.org

Questions?