FLEXIBLE SPENDING ACCOUNT (FSA)
Flexible Spending Accounts (FSAs) are tax effective, money saving options that will help you pay for qualified expenses. Elected contributions into a FSA will be deducted from your paycheck on a pre-tax basis. Meaning you do not pay federal income tax, Social Security taxes, or state and local taxes on your contribution(s).
PAR offers you the opportunity to participate in two programs.
1. Healthcare FSA
The Healthcare FSA funds can be used for qualified expenses for medical, dental and vision costs. Funds can be used towards copays, coinsurance amounts, prescriptions, and additional out-of-pocket expenses. When you enroll in the Healthcare FSA you will receive a debit card, you may use this debit card to pay for eligible expenses at the time of service. Otherwise you may submit for reimbursement via the FSA Claims Form. Your full contribution to the Healthcare FSA is available day 1.
Maximum Annual Contribution
$2,600
2. Dependent Care FSA
The Dependent Care FSA funds are to be used for eligible dependent care expenses. Please note, Dependent Care FSA reimbursements cannot exceed your account's current year-to-date balance. You must accrue the funds before reimbursed.
Maximum Annual Contribution Single (or married filing jointly) Married (filing separately)
$5,000 $2,500
USE IT OR LOSE IT!
Flexible Spending Accounts (FSAs) offer sizable tax advantages. The trade-off is that these accounts are subject to strict IRS regulations, including the use-it-or-lose-it rule. According to this rule, any unused funds will not be refunded or rolled over to a future plan year. Unused funds must be forfeited. If you are unable to estimate your health care and dependent care expenses accurately, it’s better to be conservative with your contributions.
Need to file a claim? Claims forms can be found on http://workforcenow.adp.com
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