Effective Date: April 1, 2010 (Revised)
The College supports employees’ efforts to maximize their health care and dependent care savings, through the establishment of federally-qualified reimbursement accounts for health care and/or dependent care. The policy describes the process for taking advantage of this tax-favorable benefit.
Employees regularly scheduled to work at least half-time may establish pre-tax Flexible Spending Accounts (FSAs) at the time of employment, and annually thereafter during the open enrollment period. The FSA can be used to pay for dependent care or out-of-pocket health care expenses which are not covered by another health insurance plan. The dependent care FSA and health care FSA are separate accounts, with separate rules and contribution levels.
The College pays the administrative costs associated with the plan. Employees annually elect the amount of pre-tax money they wish to set aside through pre-tax salary reduction for dependent care and/or health care.
Termination of Coverage
Employee contributions cease at the end of the month that employment terminates. Reimbursements from amounts contributed may be requested for expenses incurred during the employment period.
Human Resources maintains and provides updated information on plan provisions, including changes in federal regulations related to qualified accounts.
See the following policies for additional relevant information:
6.51 Deductions from Pay and Pay Advices 170