Flexible Spending Accounts
Flexible Spending Accounts include a POP component as well as two additional flexible spending account components for non-covered health care and dependent care expenses. The Health Care Account (HCA) allows employees to use pre-tax dollars to pay for certain non-covered medical, dental and vision care expenses including deductibles and coinsurance. The employee determines an annual amount to be deducted from their paycheck on a pre-tax basis. Then, as expenses are incurred throughout the year, employees may withdraw funds from their account. The Dependent Care Account (DCA) allows employees to use pre-tax dollars to pay for dependent care expenses such as babysitting and day care. The maximum allocation in a DCA is limited by IRS guidelines.
Employees can customize their benefit plan by choosing any combination of these flexible spending account plan components to best meet their needs. The administrative service program has been designed for full compliance with Flexible Spending Account Plan regulations and includes installation services, employee communication packages, debit card reimbursement options, and state-of-the-art support services.