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Contact Information
Provess Flexible Benefits
4050 Katella Avenue, Suite 213
Los Alamitos, CA 90720
Phone: (866) 639-5289
E-Fax: (866) 264-4093
E-mail: admin@provess.com
Palm Springs and Midwest Locations...
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FAQs
How does a Flexible Spending Account (FSA) work?
You must estimate your medical and dependent care annual expenses some companies also offer Transportation, Education and Other Qualified Benefit FSA’s-see your Human Resources Manager regarding this. (At the end of this section there is a calculation worksheet). Then you choose the amount you want to allocate into each of your designated FSA’s (Unreimbursed medical, Dependent Care, etc.) Your compensation is reduced by this amount on a pre-tax basis. Once you have incurred an eligible expense, you remit receipts for these expenses with your Voucher that is mailed to your employer monthly.
Why should I participate in the Medical Reimbursement Account when I already have health insurance?
This account is used to pay for eligible medical expenses that are not covered by insurance. For example, your insurance may not cover annual physicals, co-payments, eye exams, eye surgery, glasses, orthodontics, prescription drugs and hospital care.
What is an “eligible medical expense”?
An "eligible medical expense" generally means any expense that you could have claimed as a medical expense deduction on an itemized, federal income tax return (without regard to any threshold limitation) provided the expense has not otherwise been reimbursed from any insurance plan and is not eligible to be reimbursed by any other source.
If I set aside part of my pay, won’t I make less money?
No. Your take-home pay will increase by the amount of taxes you did not pay.
Can I change my contributions during the year?
Only if you have a change in family status (as determined by the IRS) such as: marriage, birth, adoption, or a change in you or your spouse’s employment status.
How do I benefit by participating?
Your biggest advantage is the tax savings. Every dollar you set aside in your account reduces how much you pay later in income taxes. Plus you can be reimbursed for qualified expense that you are already paying for! The portion of income that a participant allocates to the cafeteria plan is not subject to, federal income tax, state and local taxes, and social security and medicare taxes.
Use the Cafeteria FSA Calculation form CLICK HERE to see how much you can save.
What if I only need some of the benefits offered and not the others?
That is the beauty of a cafeteria plan. While a variety of benefits are offered under the plan, each employee chooses the benefits which best suit their needs
How do I determine how much I should have deducted from my pay for my FSA’s?
Use the following calculation worksheet to help you estimate your monthly expenses that you are currently paying for with post (after) tax dollars.
How do I get reimbursed the money that is taken out of my paycheck?
Each month your employer is mailed a new ”Benefit Reimbursement Voucher” for each participating employee. This voucher must be completed and signed and returned to Provess with copies of receipts that verify the expenses incurred.
Are receipts required for Dependent Care expenses?
No. When you set up your FSA for Dependent Care expenses you will be required to complete a “Dependent Care Verification” form.
What is the maximum I can have taken out of my check for each of the FSA’s?
Dependent Care maximum is $5,000 per year.
Unreimbursed medical does not have a maximum, but the IRS requires that it be “reasonable.” A good rule of thumb would be ‘not to exceed 30% of your income’ (there are different guidelines for “highly compensated” individuals, company officers and owners). For other FSA’s contact your HR manager to see if they are offered by your company.
What is the maximum age for declaring dependent care?
Up to but not including age 13; after age 13 only for those mentally or physically handicapped.
Can I utilize the child care credit on my taxes each year if I have a Dependent Care FSA?
No.
How do Dependent Care FSA’s compare to the Dependent/Child Care Tax Credit?
As a rule if your combined annual family income is under $15,000 the Dependent Care Tax Credit would be more beneficial to you. If your combined annual family income is between $35,000 and $39,000 you should examine your circumstances carefully and speak to your tax professional to determine which plan would be better. Generally speaking, if your combined income is greater than $39,000 the FSA will be more advantageous to you. If you are in doubt always check with your tax professional.
Can child care expenses be considered for first graders or higher?
Child care expenses qualify up to but not including first grade. However, before and after school costs can be included.
How do I know how much is in my FSA account?
Your balances will be listed on your monthly ”Benefit Reimbursement Voucher”.
What happens to my FSA’s if I terminate employment?
You will be able to request reimbursements for your FSA’s until you have depleted the amount in each account up to the end of the “plan year”.
What if I don’t use all of the money I set aside for my FSA’s?
All unused funds are returned to the sponsor (employer).
If I choose to purchase supplemental insurance policies (Accident, Cancer, Critical Illness, Life Insurance, etc.) can the premiums be deducted on a pre-tax basis?
Many of these policies can be paid for with pre-tax dollars. Please check with your plan administrator to find out which policies can and which ones can’t.
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For more information regarding Internal Revenue Code Section 125 go to www.irs.gov
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Flexible Benefits
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January 2010