General
Your employees who have HSAs must file IRS Form 8889 as an attachment to Form 1040, for any year in which they make or receive HSA contributions (including employer contributions) or for any year in which they take an HSA distribution. Married individuals filing jointly must attach a Form 8889 for each spouse who has an HSA.
As an employer, you are responsible for reporting the HSA contributions that you make to employees’ HSAs in Box 12 of Form W-2 (using Code W). In addition to the Form W-2, your employees with HSAs should have received a Form 5498-SA from their HSA trustee or custodian that reports the total contributions made to their HSAs during the year and the fair market value of their HSAs at year-end. If they have taken any distributions, they should also have received a Form 1099-SA on which their HSA trustee or custodian has reported the total amount of distributions made during the year.
Unless you have an IRS defined change in status, HCFSA yearly amounts can only be changed during open enrollment periods for the following Plan Year. A change in status is what the IRS considers to be life changing events that can affect your out-of-pocket expenses. Changes in status are the birth of a child, marriage, divorce, death, adoption and employment changes.
Receipts must contain the date of service, (the day you physically saw the doctor or bought something), provider information, (doctor’s name or store name of where item was purchased), the address of the provider, and a brief description of the service provided, (office visit, physical, dental cleaning, surgery, etc.)
First check your on-line account. Click on the “Claims & Payments” menu link to View Claim Activity. Go to the specific claim in question where you will be able to see if a claim was accepted, paid or denied. Claims are listed by Service Date not the day you submitted the claim.
If after you review the information you are unable to determine why a claim was not paid or partially rejected, you can either use the “Contact Us” menu link to send us an e-mail or phone us at the number listed.
Check the Resources link on this site. You will see a link to the Health Care FSA Eligible Expense List for the current year. If the expense is not listed, please contact us at (802)-865-0239 and we will be happy to discuss whether or not the expense is eligible under your plan.
You can only be reimbursed for services that have actually occurred. If you pay for daycare at the beginning of the week or the month, you can only be reimbursed for those services after they have happened. In other words you would not be paid until the end of the week or the end of the month.
If you pre-paid for a medical service (such as a surgical procedure), then you can only be reimbursed once the surgery has taken place. This includes pre-paying for hospital services for the birth of a child. You may not be reimbursed until the birth. Please note that if the pre-payment and the birth cross Plan Years, it is the birth of child that is the date of service.
Log into your on-line account and click on the “Settings” menu link. There you can change your e-mail address, user name and password or your personal information (name, address and phone number). Once you update your information there, we will be notified of the changes.
If you forget your password, please log into the MyFlexOnline website through the Employee Login button on this site. Click on the Password Reset and User Name Retrieval link. This will have you enter pertinent demographic information associated with your account and will allow you to enter a new password. If you are not able to access your account from there, please call us at (802)-865-0239.
No. Insurance premiums related to Domestic Partners are not eligible for pre-tax benefits under the federal rules.
No. The federal rules prohibit payment from these accounts for the expenses of anyone other than yourself, your spouse or your IRS eligible dependent. In some cases, such as legal adoption, your Domestic Partner’s child may qualify as your dependent under federal law, but this is unrelated to the rules governing Domestic Partners.
The IRS notes that “normal education” is not medical care. Consequently, a physician or other qualified professional must diagnose a medical condition requiring special education to correct it in order for the education to be medical care. The IRS also notes that a school “need not employ physicians to provide that special education, but must have professional staff competent to design and supervise a curriculum providing medical care.” Overcoming the learning disabilities must be the principal reason for attending the school, and any ordinary education received must be incidental to the special education provided. Also noted is that whether tuition is deductible as a medical care expense in any particular case will depend on exactly what the school provides to the individual, because a school could have a normal education program for most students and a special education program for those who need it. The IRS goes on to conclude that the children’s tuition is deductible as a medical care expense for the years in which they are diagnosed with a medical condition that handicapped their ability to learn.
The IRS has released Form 2441 for taxpayers to file with Form 1040. This form determines the amount of the Dependent Care Tax Credit (DCTC), and establishes that the amounts in Box 10 of Form W-2 are not taxable. The form and instructions allow the participant to claim the amount that they did not receive during the year, but was “permitted by the employer to carry forward and use in the following year during a grace period.” DCFSA participants are directed to subtract these grace period amounts (as well as any forfeited amounts) from the total amount of dependent care benefits received from the employer when claiming the tax exclusion.
Many, but not all expenses for summer camp are reimbursable under the tax rules that apply to DCFSAs. Your DCFSA cannot reimburse expenses for care at a camp that includes overnight stay. This is because expenses must be “employment-related expenses” in order to be eligible. The primary purpose of the camp must be to ensure the child’s well-being and protection, and must be incurred so the employee and spouse can be gainfully employed.