save taxes and manage health care costs presented by sam ramirez
TRANSCRIPT
Save Taxes and Manage Health Care Costs
Presented by Sam Ramirez
Q: What are flexible spending accounts?A: Accounts where you can set aside pre-
tax dollars to pay for medical or dependent care expenses
Q: Why should you want to learn more?A: To save tax dollars, smooth out costs
Q: Who administers the benefit for B-W?A: Finance, Human Resources and Payroll
Q: Who is eligible to participate?A: B-W Employees, even if they do not
have our health care plan, special rules apply for Dependent Care Account
Q: What accounts are available?A: Medical Care and Dependent Care
Reimbursement Accounts
Q: How much can I set aside in each account?
A: Up to $2500 in medical and $5000 in dependent care account
Q: How do I determine how much to set aside?A: Review past expenses and be a little
conservative
Q: Can I change the amount I set aside?A: Generally not unless it is a qualifying event.
Q: What are some eligible expenses?A: Co-pays, co-insurance, deductibles, items that
are not covered by plan (glasses, braces, etc.)
Q: What are some ineligible expenses?A: Vitamins, face-lifts, OTC drugs, animal drugs,
etc.
Q: When do I have access to the money?A: Immediately, for medical care, after it
has been deducted from your pay for dependent care
Q: When must expenses be incurred?A: January 1, 2014 through December 31,
2014
Q: How does expense reimbursement work?
A: Submit claim form to Finance
First, enrollIncur eligible expense – get receiptYou can request reimbursement for
medical anytime after it’s been deducted for dependent care
As you incur eligible expenses and you pay for a service – submit claim form and receipt
Within a few days you will receive your check
Q: What happens if I have money left over?
A: NEW - Beginning in 2014 for year 2015, up to $500 in unused funds from medical account can be carried over . Anything over $500 is forfeited.
Q: How does it actually save me money?A: Reduces gross taxable income
Q: Who do I submit claims to?A: Finance – Lisa Giesen
Q: Where do I get claims forms?A: HR or on-line
bw.edu/resources/hr/forms
Q: How long does it take to get money?
A: Not long – couple of days
Q: When is the last day I can submit a claim for this year (2014)?
A: March 31, 2015
Q: Do I need to re-enroll every year?A: Yes
Q: What if the amount I am going to set aside next year is the same, do I still have to re-enroll?
A: YES!
Q: Where do I get the enrollment form?
A: Visit HR’s web site.
Complete top portionName, last 4 digits SSN, departmentCheck New Enrollment
Biweekly (24 pays)First line – biweekly amountSecond line – Total for Year
Monthly (12 pays)First line – Monthly amountSecond line – Total for Year
Medical Reimbursement Account is for employee, spouse and dependent children health-related expenses
Dependent Care Reimbursement Account is for spouses, parents and typically dependent children of employees – after school care – nursing home – etc.
