The Federal Government's division of the IRS has established Flexible Benefit programs that the CCG adopted several years ago. There are three separate areas that are associated with our Flex Plans:
1) Premium Re-Direction Program allows employees who are having deductions taken Sfrom their payroll for insurance placed into a pre-tax status. Simply this means that you are not equired to pay taxes on health, dental and certain supplemental policies;
2) Medical Spending Account (MSA) assists employees in paying for their annual out-of-pocket expenses. If an employee participates in this program they can enroll and request a certain amount be deducted on a bi-weekly basis, pre-tax, and simply reclaim the money as expenses incur;
3) Dependent Day Care Reimbursement Account (DDC) allows employees the same opportunity. For those who have children and/or elderly parents in a day care situation you may project your annual costs, request the pre-taxed money be deducted on a bi-weekly basis, and reclaim
it as expenses incur or as the year progresses.
A maximum of $5,000 annually; $2,500 for married filing separate tax returns is all that is allowed. It is always important that you understand that any flexible benefit money redirected from your pay for reimbursement accounts that are not spent by the end of the plan year (December 31 of each year) will be forfeited. All expenses must be incurred in the plan year in which reimbursement is charged.