Flexible Spending Accounts 2014

1. Flexible Spending Accounts 2014 Save Taxes and Manage Health Care Costs Presented by Sam Ramirez

2. Who, What, When, Where, Why & How? • Q: What are flexible spending accounts? • A: Accounts where you can set aside pre-tax dollars to pay for medical or dependent care expenses • Q: Why should you want to learn more? • A: To save tax dollars, smooth out costs • Q: Who administers the benefit for B-W? • A: Finance, Human Resources and Payroll

3. Who, What, When, Where, Why & How? • Q: Who is eligible to participate? • A: B-W Employees, even if they do not have our health care plan, special rules apply for Dependent Care Account • Q: What accounts are available? • A: Medical Care and Dependent Care Reimbursement Accounts • Q: How much can I set aside in each account? • A: Up to $2500 in medical and $5000 in dependent care account

4. Who, What, When, Where, Why & How? • Q: How do I determine how much to set aside? • A: Review past expenses and be a little conservative • Q: Can I change the amount I set aside? • A: Generally not unless it is a qualifying event. • Q: What are some eligible expenses? • A: Co-pays, co-insurance, deductibles, items that are not covered by plan (glasses, braces, etc.) • Q: What are some ineligible expenses? • A: Vitamins, face-lifts, OTC drugs etc.

5. Who, What, When, Where, Why & How? • Q: When do I have access to the money? • A: Immediately, for medical care, after it has been deducted from your pay for dependent care • Q: When must expenses be incurred? • A: January 1, 2014 through December 31, 2014 • Q: How does expense reimbursement work? • A: Submit claim form to Finance

6. What is the Reimbursement Process? • First, enroll • Incur eligible expense – get receipt • You can request reimbursement for medical anytime after it’s been deducted for dependent care • As you incur eligible expenses and you pay for a service – submit claim form and receipt • Within a few days you will receive your check

7. Who, What, When, Where, Why & How? • Q: What happens if I have money left over? • A: NEW - Beginning in 2014 for year 2015, up to $500 in unused funds from medical account can be carried over . • Q: How does it actually save me money? • A: Reduces gross taxable income • Q: Who do I submit claims to? • A: Finance – Lisa Giesen

8. Who, What, When, Where, Why & How? • Q: Where do I get claims forms? • A: HR or on-line bw.edu/resources/hr/forms • Q: How long does it take to get money? • A: Not long – couple of days • Q: When is the last day I can submit a claim for this year (2013)? • A: March 15, 2014

9. Who, What, When, Where, Why & How? • Q: Do I need to re-enroll every year? • A: Yes • Q: What if the amount I am going to set aside next year is the same, do I still have to re-enroll? • A: YES! • Q: Where do I get the enrollment form? • A: Visit HR’s web site.

10. How Do I Complete Enrollment Form for Medical? • Complete top portion • Name, last 4 digits SSN, department • Check New Enrollment • Biweekly (24 pays) • First line – biweekly amount • Second line – Total for Year • Monthly (12 pays) • First line – Monthly amount • Second line – Total for Year

11. Dependent Care vs. Health Care • Medical Reimbursement Account is for employee, spouse and dependent children health-related expenses • Dependent Care Reimbursement Account is for spouses, parents and typically dependent children of employees – after school care – nursing home – etc.

12. To Learn More • www.bw.edu/resources/hr • www.bw.edu/resources/hr/forms