You have questions? We have answers.
WHAT IS A MEDICAL FSA?
A Flexible Spending Account, or FSA, is a benefit offered to employees in which you elect to have your annual contribution (for 2020 the limit is $2,750) deducted form your paycheck, each pay period. The amount that you set aside from your paycheck does not count as taxable income; thus giving you a tax-break and increasing your take-home pay.
WHAT IS A DEPENDENT CARE FSA?
A Dependent Care FSA, similar to a Medical FSA, allows you to set aside money, pre-tax, to pay for eligible out-of-pocket expenses for dependent care. Examples of eligible expenses are: preschool, summer day camp, beofre or after school programs, and child or elderly daycare.
You can pre-tax up to $5,000 for your Dependent Care FSA.
HOW DOES A MEDICAL FSA WORK?
Money is set aside from your paycheck before taxes are taken out and is loaded on to a Prepaid Benefit Visa® Card. You can then use these pre-tax FSA dollars to pay for eligible health care expenses throughout the plan year. Examples of eligible expenses are: doctor’s visits, prescription drugs, dental and vision expenses. You’re already paying for these expenses, why not save money?
If you are in the 25% Tax Bracket pre-taxing $2,500 could save you approximately $625 in Withholding Taxes!
HOW DOES A DEPENDENT CARE FSA WORK?
Similar to the Medical FSA, money is set aside from your paycheck before taxes are taken out. Once you file a claim, you are reimbursed your per payroll election amount by Precision Administrators, Inc. Or, you can file an annual claim with your full election amount and the initial receipt from your daycare provider and every pay-period PAI will reimburse the amount you elected, pre-tax, on a direct-deposit basis.
If you are in the 25% Tax Bracket pre-taxing $5,000 could save you approximately $1,250 in Withholding Taxes!
WHAT HAPPENS IF I LEAVE MY PLACE OF EMPLOYMENT WHERE I AM PARTICIPATING IN A FLEXIBLE SPENDING ACCOUNT?
Upon termination, Precision Administrators, Inc. freezes your account based on funds received year to date. Remaining positive balances may be reimbursed by filing claims for services incurred up-to the date of termination. You can access available funds from your account for 90 days after date of termination.
HOW CAN I BE REIMBURSED FOR AN OUT OF POCKET MEDICAL OR DEPENDENT CARE EXPENSE?
PAI accepts claims via mail, fax, and email. You must always submit a signed claim form along with the itemized receipts that substantiate your request. Forms can be found under the Employee Tab.
You may also submit claims using our mobile-friendly "app" site by visiting https://mobile.paitpa.com/ from your web enabled smartphone or tablet.