Two types of Spending Accounts are offered, Health Care and Dependent Day Care. You can enroll in one or both accounts. If you enroll in the Heath Care Spending Account you will automatically receive a debit card to use for qualifying expenses. There is no cost to the participant for the debit card.
Payflex will continue to process claims until November 15th for the FY18 fiscal year. Contact PayFlex if needed at 1 (800) 284-4885 or online.
You contribute to these accounts through payroll deduction before paying federal income and Social Security taxes. When you have qualifying expenses, you may withdraw money from your accounts to pay those expenses. This money is not taxed at withdrawal. In other words, you never pay federal income tax or Social Security tax on this money.
Because of the tax advantages, the federal government sets the following restrictions on these accounts:
- You cannot change your contribution amount during a plan year unless you add or lose a family member or you experience a change in job status, and the change you make corresponds to the change that has occurred.
- You forfeit unused amounts at the end of the plan year.
- You can use the accounts only for expenses incurred during the plan year.
- You cannot transfer money between accounts.
- While the same types of expenses that qualify for spending accounts also qualify for the medical tax deduction or child care tax credit on your federal income tax return, you cannot take the deduction or credit for expenses reimbursed through the spending accounts.
The plan year runs from September 1 through August 31.