Frequently Asked Questions
While this FAQ section pertains to cafeteria plans in general, your specific plan may or may not include all of the provisions to which these explanations refer. You should check your summary plan description for your specific benefit options.
|General Questions for Reimbursement Plans|
|How often are claims paid?
||Claims are paid every business day, and checks are issued and mailed every business day.|
|Do I have the option of having my reimbursements deposited directly into my bank account?
||Yes. You can read more about this option on the direct deposit page.|
|How long does it take to get my money back?
||The majority of the "wait" will be mail time. In-house turnaround for payment of claims is most often three to four business days.|
|When can I turn in claims?
||You can submit claims for reimbursement as often as you wish.|
|Is there a deadline for filing HCRP and DCRP claims for reimbursement?
||Yes. The deadline for filing claims for the HCRP for a particular Plan Year is ninety (90) days following your date of termination of employment or ninety (90) days following the close of the Plan Year, whichever comes first. The deadline for filing claims for the DCRP for a particular Plan Year is ninety (90) days following the close of the Plan Year, regardless of whether you have terminated employment or not.|
|Are the deadlines affected by the grace period?||Yes. If your plan includes a grace period, and you have not terminated your employment, the deadline for filing claims beyond the end of the Plan Year is increased from ninety (90) to one hundred twenty (120) days.|
|What happens to my money if the third party administrator goes out of business?
||The funds remitted to the third party administrator for the payment of claims are held in a fiduciary capacity. These are not assets of the third party administrator. Also, since benefits cannot be paid from a fiduciary account, dollars are transferred each day from the fiduciary account to a benefits account. The third party administrator issues reimbursement checks to you from this benefit account. .|
|Who do I contact if I have any questions?
||You may contact the customer service department at Flex Corp by dialing 1-866-401-5272 (toll-free) and selecting option 3, option 4|
|What are the customer service hours?
The third party administrator customer service hours are 8:00 am to 6:30 pm (Eastern Standard Time).
In addition, account information can be accessed through this Web site by clicking the "Account Access" link on the Plan Participants tab.
|Flexible Employee Benefits Plan|
|What is a Flexible Employee Benefits Plan?||A Flexible Employee Benefits Plan is a voluntary plan which allows you to pay for certain expenses before taxes, such as:
» employer-sponsored medical insurance premiums
|How does this plan work?
||The plan allows you to reduce your taxable income by the cost of your benefits. This results in both social security and federal withholding, and, in most cases, state income taxes being reduced producing a net increase in your take home pay.|
|When can I sign up?
||All elections must be made before the first day of the Plan Year or in the case of a new hire, prior to the benefits effective date, to be eligible for the plan savings. Normally, these elections will remain unchanged during the Plan Year.|
|When can I change my elections?
||You may change your election for any new Plan Year during the open enrollment period prior to the beginning of that year. An election, once made, cannot be changed during the year unless there has been a qualified change in status.
Qualified changes in status are:
and must affect the eligibility for coverage of the employee, spouse, or dependent.
|Health Care Reimbursement|
|What is a Health Care Reimbursement Plan (HCRP)?||Through payroll reduction you can set aside money on a pre-tax basis to reimburse yourself for non-insured medical, dental, and vision expenses, such as your deductible and co-payment amounts under your insurance plan and any other non-insured medical expenses that can be itemized (with the exception of insurance premiums and long term care).
Each time you have a medical expense, simply submit the claim to your insurance company as usual. When the insurance company processes the claim, an Explanation of Benefits (EOB) will be returned to you. Send to Flex Corp a copy of the EOB along with a completed request for reimbursement form. Flex Corp will process the receipts and a reimbursement check will be sent to your home.
|May I use the Health Care Reimbursement Plan for expenses of my non-insured dependents?||Yes. Your dependents do not have to be covered under the company's medical, dental or vision plans to participate in the Health Care Reimbursement Plan for eligible medical, dental, or vision expenses.|
|Is there a minimum or maximum I may contribute?||You may contribute as little as you feel is necessary to cover your non-insured medical, dental, and vision expenses, but no more than your specific plan permits. Some employers may also impose minimum funding requirements.|
|Aside from insurance deductibles and co-payment amounts, what other types of expenses are reimbursable?||Generally speaking, any medical expenses which can be itemized as such for income tax purposes can be reimbursed under the HCRP. This could include such things as hearing aids and their batteries, saline solutions for contact lenses, travel expenses for specific medical conditions, prescription drug co-payments, insulin, orthodontic expenses (whether for a child or adult), etc. You can also be reimbursed for certain over-the-counter (OTC) items.|
|Are there any examples of medical expenses which are not reimbursable?||Yes. Most common are cosmetic surgery or cosmetic procedures. Examples of possible cosmetic procedures are teeth whitening and facelifts. Your physician will make the determination as to whether or not a procedure is cosmetic in nature. Some other examples are concierge medical services, PPO discount amounts, any amount you are not obligated to pay, or amounts which have already been reimbursed to you from another source.|
|If I use the HCRP, can I still itemize medical expenses on my tax return?||Yes, but not on the same expenditures. For example, if you elect an annual benefit of $100, and later incur $2,000 in medical expenses (insurance pays nothing) and are reimbursed your annual election of $100 from the HCRP, only the remaining $1,900 can be used as expenses that can be itemized for income tax purposes.|
|How are orthodontic expenses handled?||
Generally, when a patient needs braces the orthodontist will present you with a bill for the total amount due for services, which will span two or three plan years. However, most often the orthodontist will allow you to sign a contract and make monthly installments for the services. For example, while the services may total $3,600, the orthodontist may allow you to make an initial down payment of $500 and make monthly payments of $100 for the remaining thirty-one (31) months. To have these expenses reimbursed through your HCRP, you should determine what your payments will be in each of the affected plan years, and set that amount aside each year in your HCRP.
Alternatively, your employer is permitted, but not required to allow for the reimbursement of orthodontic services before the services are actually provided, but only to the extent that you have actually made the payments in advance of the treatment in order to receive services.
|What happens to my money if I quit before I use it all?||You can be reimbursed for any eligible expenses you incur prior to your date of termination. Expenses incurred after your termination date are not payable, and unused dollars in the HCRP will be forfeited to the employer.|
|What happens if I don't use all of my money?||Unused dollars are forfeited to the employer. They cannot be carried forward to a new Plan Year; they cannot be transferred to another account (i.e. HCRP dollars cannot be transferred to DCRP); and they cannot be returned to the employee as taxable income. You should be conservative in your estimates.|
|What happens if I have an eligible expense, but not enough money in my account to cover it?||When you sign up for the HCRP, you are electing an "annual benefit". The full annual benefit is available to you throughout the period of coverage (e.g. through the end of the Plan Year or until your date of termination) regardless of your actual contributed amount to date.|
|What happens if my employment is terminated and I haven't incurred the expense for which I set aside the money?||In some situations you may elect to continue participating in the HCRP through end of the current plan year and continue paying your contributions on an after-tax basis by remitting them directly to the employer. Your HCRP coverage will remain in effect as though you were still employed, as long as your contributions are made in a timely manner. You should check with your employer for the specifics.|
|How does a Qualified Transportation Reimbursement Plan work?||You sign an election form which allows your employer to make payroll reductions equal to the cost of parking and commuting expenses. When those expenses are incurred, you simply request reimbursement of the expenses, in writing, with appropriate proof of payment.|
|When am I eligible to participate?||You are eligible to participate in the Plan as of the date you become a part-time or full-time employee of the employer.|
|Who is not eligible to participate?||Partners of a partnership, sole proprietors and greater than 2% shareholders of a Sub-S Corporation are not eligible to participate in the Plan because they do not meet the definition of employee.|
|Is there a limit to the amount I can be reimbursed through the Plan?||Yes. Current limit is $240.00 per month for qualified parking expenses and $125.00 per month for qualified vanpooling or transit expenses.|
|What is a "qualified" expense?||A qualified expense as it relates to the Qualified Transportation Reimbursement Plan means it must be work-related. For instance, parking expenses at a sports facility are not reimbursable unless the sports facility is your place of employment.|
|Qualified parking expenses are:||Work-related expenses you pay for parking your vehicle near your employer's place of business, or in a parking lot from which you commute to work by vanpooling or carpooling.|
|Qualified vanpooling expenses are:||Work-related expenses you pay for transportation between your residence and work, but only if transportation is provided in a "commuter highway vehicle", defined as a highway vehicle with a seating capacity of six or more adults not including the driver. This can include transportation provided by the employer, or by a company in the business of vanpooling.|
|Qualified transit expenses include:||Any pass, token, fare card, voucher or similar item that entitles the employee to work-related transportation (or transportation at a reduced price) on mass transit facilities, or provided by an entity in the business of transporting persons, if such transportation is provided in the type of highway vehicle used for vanpooling.|
|If my neighbor and I ride together in the neighbor's car, and I pay half of the gas expenses, can I use the vanpooling or transit benefit to receive reimbursement?||No. Carpooling expenses are not reimbursable. Please remember, there are restrictions as to what constitutes vanpooling and mass transit.|
|My spouse pays for parking as well. Can those expenses be reimbursed under my plan?||No. In order for expenses to be reimbursed, they must be the expenses of the employee. In order for the spouse's expenses to be reimbursed, the spouse's employer would need to set up a plan of its own.|
|Can I use this benefit for the tolls I pay to commute to work?||No. There is no provision specifically for tolls.|
|Can I use the parking benefit in conjunction with vanpooling?||Yes, with each reimbursable benefit subject to its own applicable monthly maximum as described above.|
|How do I receive reimbursement for these expenses?||When you have incurred expenses which qualify for reimbursement, you will send the receipt for those expenses to Flex Corp along with a claim form.|
|How long do I have to wait for reimbursement?||Flex Corp processes claims and issues checks on a daily basis. Provided the funds are currently available, reimbursement should be made within a few days.|
|How do I get reimbursed for transit costs, since I don't receive a receipt for the money I pay to ride the bus each day?||The claim form allows you to certify these expenses by your personally signing the reimbursement request form.|
|Can I certify, by signature, my parking and vanpooling expenses?||No. Parking and vanpooling expenses require a written receipt.|
|I always pay my parking bills by check. Can I turn in a copy of my canceled check and receive reimbursement?||No. Expenses must be properly substantiated, so you will want to be certain your parking provider can issue you a receipt or invoice for the expenses. Receipts and invoices should contain the provider's business name and address.|
|Do I have to sign up for this when I become eligible, or can I sign up at any time?||You can sign up at any time, provided the election is made on a prospective basis.|
|Once signed up, am I obligated to remain in the plan for the remainder of the year?||No. You can revoke an election at any time provided it is on a prospective basis.|
|If my expenses increase or decrease during the year, can I change my election?||Yes, provided the change is made on a prospective basis. Retroactive changes or elections are not permissible.|
|Are qualified transportation benefits subject to taxation at any point?||Reimbursements made to you for qualified expenses are not subject to federal wage or Social Security wage withholding.|
|Are these benefits part of a cafeteria plan?||No. This is a benefit separate and apart from benefits which you may have through your company's cafeteria plan. This benefit is not permitted in a cafeteria plan.|
|What are the benefits I will have if I enroll in the plan?||The most obvious benefits are the tax advantages, since qualified expenses are not subject to federal wage or Social Security wage withholding.|
|Are there any aspects of the plan that I should understand before enrolling?||Remember, in order for you to receive reimbursement, expenses must be substantiated in writing. In addition, since this is a salary reduction plan, it could have a minimal impact on future Social Security benefits.|
|Who do I contact if I have any questions?||
You may contact the customer service department at Flex Corp at the following number: 866-401-5272, option 3, option 4.
|Dependent Care Reimbursement Plan|
|What is the Dependent Care Reimbursement Plan (DCRP)?||This benefit works much like the HCRP but it is designed to enable you to pay for dependent day care services on a pre-tax basis. There is a child care tax credit available to the employee at the end of the year, so it is important to compare the tax credit versus the Dependent Care Reimbursement Plan to determine which option is better for you. Each time dependent day care services are paid, obtain a receipt with the dates of services, cost of services, the name of the dependent(s), and the provider of services. Send a copy of this receipt to Flex Corp along with a completed request for reimbursement form. Flex Corp will process the receipts and send you a reimbursement check.|
|Is there a minimum or maximum I may contribute?||You may contribute as little as you feel is necessary to cover your qualified dependent care expenses, but no more than $5,000 per year.|
|If my spouse participates in a DCRP through his employer, can we each contribute $5,000 per year to the plan?||No. The Internal Revenue Service has indicated that $5,000 per year is the maximum amount for a couple who files jointly for tax purposes. For a couple who files separately, $2,500 (per filer) is the annual maximum.|
|If I participate in the DCRP, can I still use the dependent care tax credit?||Yes you can, but not with the same dollars. For example, assuming you have two qualifying children (under age 13) and you normally incur $6,000 per year in dependent care expenses. You have elected to use the DCRP to reimburse yourself for $3,000 of those expenses. The tax credit applies to the first $6,000 of eligible expenses for two qualifying dependents. To use the tax credit, you must first subtract the DCRP disbursements ($3,000) from the maximum allowable under the tax credit ($6,000). The result in this example, $3,000, is the most on which you can claim the tax credit. Another example is if you have one qualifying child (under age 13) and you normally incur $4,000 per year in dependent care expenses. You have elected to use the DCRP to reimburse yourself for $3,000 of those expenses. The tax credit applies to the first $3,000 of the eligible expenses for one qualifying dependent. To use the tax credit, you must first subtract the DCRP disbursements ($3,000) from the maximum allowable under the tax credit ($3,000). The result ,in this example, is negative, and you have no available dollars upon which to claim the tax credit.|
|Who is an eligible day care provider?||Anyone who is not your dependent under the age of nineteen, or anyone for whom you do not claim an exemption for tax purposes. This can be any qualified day care facility, or any individual whether the individual cares for your child inside or outside of your home. However, if an individual cares for your child outside of your home, you will want to check your state's guidelines for what constitutes a "qualified" day care facility.|
|What types of expenses qualify as eligible dependent care expenses?||These are expenses you incur for dependent care because you and your spouse are employed, and can include expenses such as registration fees (provided the dependent subsequently attends the daycare facility) and transportation expenses if a care provider takes a qualifying person to or from a place where care is provided, such as to and from the daycare facility to school. . They can be for children under the age of thirteen (13), for disabled children, or for adult care. To qualify, you must be able to claim the dependent for tax purposes and be actively working.|
|What types of expenses do not qualify as eligible dependent care expenses?||Expenses such as meals and snacks, diaper fees, classes such as swimming, dancing, or art, and activity fees are not eligible for reimbursement under the DCRP. Also, it is important to remember that the expenses must have been incurred to enable you and your spouse (if applicable) to remain gainfully employed.|
|What does gainfully employed mean?||It means that the income of the lower paid spouse must be at least equal to the dependent care expenses you incur.|
|If my spouse is a full-time student, but not employed, can I still participate in the DCRP?||Yes. If your spouse is a full-time student or disabled, your spouse will be considered to have "income" of $250 per month if there is one qualifying dependent, or $500 per month if there are two or more qualifying dependents. You may participate in the DCRP at the applicable level based on your spouse's "income" and the number of qualifying dependents (e.g. one qualifying dependent allows you to elect up to $3,000 per year; two or more qualifying dependents allows you to elect up to $5,000 per year)|
|What happens to my money if I quit before I use it all?||If you still have dollars in your DCRP when you terminate employment you may continue to submit eligible dependent care expenses you incur through the end of the Plan Year.|
|What happens if I don't use all of my money?||Unused dollars are forfeited to the employer. They cannot be carried forward to a new plan year, and they cannot be transferred to another cafeteria plan account. They cannot be returned to the employee as taxable income. You should be conservative in your estimates.|
|What happens if I have eligible dependent care expenses, but there is not enough money in my account to cover it?||You will be reimbursed up to your current account balance. The remainder of the charges will be "held" until such time as additional funds are received, at which time you will automatically be sent the balance. There is no need to resubmit the expense.|