As your employer, EPISD offers various tax reduction benefits through payroll deduction to include:
- Section 125 Premium Conversion
- Flexible Spending Account (FSA)
- Dependent Day Care
- Health Savings Account (HSA)
Section 125 – Premium Conversion
Section 125 – Premium Conversion is an IRS approved way for employees to pay health, dental, and vision premiums from your paycheck before taxes with pre-taxed deductions.
- This is a benefit that can only be offered by your employer through payroll deduction.
- In effect, by participating employees can increase their take-home pay by reducing their taxable income.
YOU MUST ENROLL ONLINE AND ELECT TO PARTICIPATE IN THIS TAX SAVINGS OPTION DURING OPEN ENROLLMENT – Just Click on "Yes" I want to save and enter the pledge amount for the year.
Flexible Spending Account (Medical Care & Dependent Day Care)
One of the options under the Flexible Spending Account is the Medical Care Account which is for eligible medical expenses (to include health plan deductibles, co–pays for medical and pharmacy, co–insurance, vision care and dental care expenses).
You may pledge any amount up to $2,500 during the open enrollment Benefit Plan Year (September 1 through August 31). The pledge coincides with the Plan Year. Visit the TaxSaver Plan Website at http://www.taxsaverplan.com/ to see the list of eligible medical expenses. Eligible medical related expenses must be incurred within the Plan Year, but must not have been paid or reimbursed through another group or individual health care plan. Coverage for the 2013–2014 Plan Year begins on September 1, 2013 and continues through August 31, 2014. FSA–Medical Care Deductions will be deducted beginning with the September 15, 2013 paycheck.*
EPISD has adopted the "75–Day Grace Period", which extends the period of time that eligible medical claims can be incurred under the Medical Care FSA. *
It is important that you budget carefully when taking advantage of either of the Flexible Spending Account Medical Care and/or the Dependent Day Care Accounts. The same tax law that permits these benefits to receive special tax treatment also specifies that any money that is left in your account at the end of the plan year must be forfeited.
- The DATE OF SERVICE for eligible expenses must be incurred/accumulated within the plan year (09/01 to 8/31). EPISD has adopted the "Grace Period" that allows an additional 75 grace days to incur eligible expenses, normally (September 1 through November 14 of each year). The date of service NOT THE DATE OF PAYMENT controls the reimbursement.
- The "Grace Period" allows for claims incurred/accumulated during a Flexible Benefit Plan Year to be filed or substantiated with TaxSaver Plan up to 90 days after the end of the plan year. The deadline for filing or verifying/substantiating the claim is November 30, 2014.
The Flexible Benefit Plan grace period only extends to the Medical Care Account.
Dependent Day Care Account
The other option under the Flexible Spending Account is the Dependent Day Care Account that assists you by allowing you to set aside funds on a pre–tax basis to pay or be reimbursed for dependent day care expenses. The Dependent Day Care expense must be work related, for your eligible dependent (defined by the IRS) that is under the age of 13 and/or for the care of a dependent or spouse who is physically or mentally incapable of self–care.
Your eligible dependent must be:
- Children under the age of 13
- Care of dependent, spouse, or elderly parent who is physically or mentally incapable of self-care
In addition, qualified dependent day care expenses must be work related
Child–care center or adult day care center
Baby–sitter, caretaker, or after school care
The maximum amount you can contribute to your Dependent Day Care Account is:
- $2,500 – if filing an Individual Federal Income Tax Return
- $5,000 – if married. The minimum pledge amount is $240. For more information visit:
The Administrator for EPISD's Flexible Spending Account Medical Care and Dependent Day Care is TaxSaver Plan. Please visit their website at http://www.taxsaverplan.com/ for:
- Helpful Information
- News & Updates – IRS Information
- Tax Calculator
- Listing of Eligible Expenses
- Frequently Asked Questions and Answer
HEALTH SAVINGS ACCOUNT (HSA)
An HSA is a special account owned by an individual and used to pay out–of–pocket expenses (such as health plan deductibles, co–pays for medical and pharmacy, co–insurance, vision care and dental care expenses) or to grow as savings. One of the benefits of an HSA is that it is portable, meaning the HSA funds always belong to the individual.
Who is eligible? Per IRS rules, any adult can contribute to an HSA if he/she:
- Has coverage under an HSA–qualified high deductible health plan (HDHP)
- Has no other first–dollar medical coverage
- Is not enrolled in Medicare
- Cannot be claimed as a dependent on someone else's tax return
- Cannot be participating in a Flexible Spending Account
Enrollment in the HSA is open at any time during the year as long as the eligibility rules are met. Does TRS offer an HSA?
- No. However, ActiveCare 1–HD qualifies as an HDHP for all coverage categories.
- Employees are not required to have an HSA to enroll in these plans. However, by enrolling, you save on income taxes and have savings set aside to pay the high deductible and eligible out of pocket expenses.
JP Morgan Chase is the Financial Custodian for the Health Savings Account (HSA). Some of the benefits of the HSA are:
- Payroll Deduction before Tax
- Streamlined Debit Card (Integrated with TRS–AC plans through BCBS and Express Scripts)
- EPISD pays monthly maintenance fee
If you are contributing to a FSA Medical Care Account, you cannot contribute to an HSA until the "Grace Period" has run out. Contributions to an HSA can be made at any time of the year as long as you meet the eligibility criteria.
By visiting the Employee Benefit website at www.episdbenefits.org you can access:
- HSA Video
- HSA Calculator
- EPISD/Chase HSA Payroll Deduction Authorization Form
- HSA Full Brochure
- List of HSA Qualified Medical Expenses
- HSA Frequently Asked Question
- Investment Information
- HSA Updates
- ONLINE ENROLLMENT LINK to establish an account with Chase
Here is how the card works with the FSA Plans:
- You will be able to use your card at accepted medical, dental and vision merchants, as well as approved pharmacies (a complete listing of approved pharmacies is available on the TaxSaver Plan website) and approved day care providers in accordance with IRS guidelines.
- During the year, TaxSaver Plan will attempt to match FSA debit card expenses against information sent to TaxSaver from BCBS (TRS-ActiveCare) for medical and prescription services.
- If you waived coverage under the TRS-ActiveCare health plan offered by EPISD, you will be required to submit receipts to substantiate any FSA debit card expenses. In addition, please respond promptly to requests for information from TaxSaver Plan to avoid card interruptions.
- If TaxSaver Plan needs a receipt from you to substantiate an FSA Debit Card expense, you will be contacted by email or mail with a request for such information.
- If you do not wish to use your FSA Debit Card, you may submit claims for reimbursement. Claim forms are available on-line at www.TaxSaverplan.com. Please be sure to include a completed claim form with your request. Reimbursements are processed daily.
You may reach TaxSaver Plan's Customer Service Department Monday – Friday 7:00 – 4:45 MST by emailing csr@TaxSaverplan.com or once online click under “Contact Us”.
You may reach TaxSaver Plan by phone at 1-800-328-4337.
The is an example of how the debit card will look like.