Client Webinar Session/Training 2011

1. Client Webinar Session/Training 2011

2. Flexible Spending Accounts 2011 Open Enrollment CBIZ Flex September 30, 2010

3. Product Offerings Medical Reimbursement Account Allows employees to pay for qualified medical expenses with pre-tax dollars. Employees reduce their federal, state and FICA taxes receiving a 28 to 43% tax reduction. (depending on tax bracket) Dependent Care Reimbursement Account Allows employees to pay for qualified child/dependent care expenses with pre-tax dollars. Employees can save $1,500 with an annual election of $5,000 dollars and up to $2,000 in a higher tax bracket.

4. Product Offerings (cont.) Limited Flexible Spending Account A specialized Healthcare FSA that reimburses qualified expenses with pretax dollars. It is designed for those employees that are enrolling in a qualified high-deductible Health Plan (HDHP) and who want to participate in a Health Savings Account. (HSA) Premium Only Plan The Premium Only Plan allows employees to pay their share of premiums with pretax dollars. For example: health, dental, vision, term life, disability and cancer insurance.

5. Product Offerings (cont.) Qualified Parking & Transit Plans Transit Plans allow employees to set aside pretax dollars to be used for qualified transit expenses. (incurred in order to travel to and from work) Parking Plans allow employees to set aside pretax dollars to be used for commuter parking expenses. (incurred for parking in order to work) Health Reimbursement Arrangements Employer funded medical accounts that allow employees to be reimbursed for qualified medical expenses up to a maximum dollar amount.

6. Employer Benefit: Employers save payroll taxes such as FICA, Medicare, FUTA & SUTA. Many employers actually totally offset their administration cost with the payroll tax savings. EMPLOYER TAX SAVINGS EXAMPLE Example: Employer with 10 participating employees each earning $30,000 per year, electing to “pre-tax” $3,000 each per year for health insurance, medical and dependent care expenses.

7. Employee Benefit: Flexible Spending Account Information A CBIZ Flex plan is a “win-win” for employees. Employees save all Federal, State, FICA and Medicare taxes on their contributions. EMPLOYEE TAX SAVINGS EXAMPLE Let’s look at how contributing to a Flexible Spending Account could affect an employee’s paycheck and save taxes. Example: Employee earning $30,000 per year and contributing $3,000 annually to the Flex plan for medical and dependent care.

8. Eflexonline.com Eligibility Management Add new employees. Change benefit elections, personal information, or terminate employees from the plan. Automatically synchronize contribution discrepancies with payroll records. Employee Support Review a single participant’s account balance. Get a year-to-date report showing all participants and their account balances. Review the next payroll contribution report. Downloadable Reports Year-to-date and year-to-date by month Contribution Listing Check registers Payroll deduction summaries at enrollment Debit Card Settlement NQE (Non-Qualified Fee) Amount Repaid Online Participants with Balance Due Eflex Refresher Training: Please email: cbizflex@cbiz.com

9. Myflexonline.com This website allows the participant access to all of their flexible benefit information – medical, dependent care, transportation, and parking election amounts; contributed year-to-date; claims filed; amounts paid and much more! View Account Information Account Balance Election information Plan year start/end dates View Debit Card transactions Create Claim forms to be printed for submission Repay NQE (Non-Qualified Fee) The website is updated each night with the current day’s transactions so you are always accessing the most current information.

10. How to Increase Participation in 2011 Give examples during Open Enrollment For every $100 the participant spends in doctor visits, Prescriptions, dental visits, eye doctor visits, and much more, the participant can save $30.00 (even more if you are in a higher tax bracket!) If the participant’s Dependent Care annual election is $5,000 they could save $1,500 annually and up to $2,000 in a higher tax bracket!

11. How to Increase Participation in 2011 (Cont) If you offer the Take Care Card, promote the convenience of not having to pay out of pocket. ***Inform participants to keep all receipts even when using the Take Care Card!*** Inform employees that claims received by 5:00pm ET on Wednesday, are processed by Friday!

12. Open Enrollment 2011 Client Options: • Online Enrollment: • If you elect this option, CBIZ Flex will send you the website address with the user ID and password your employees will need to enter into the enrollment website. Your review and verification of this information is needed no later than five business days after the enrollment period has closed to ensure timely uploading of participant elections. • Enrollment File: • The enrollment file will be sent to the Secure FTP site. The enrollment file will include demographic information and participant elections. • Enrollment Forms: • Please understand that there is an additional fee of $5.00 per form (up to a maximum of $500)

13. Enrollment Options (Detail) Online Enrollment: The latest closing date for online enrollment is: December 6, 2010 Clients will review elections and approve through FlexEnroll

14. Enrollment File: File sent to CBIZ Via Secure FTP Site by: December 6, 2010 Clients will receive an election report via Secure FTP to review.

15. Enrollment Forms: Paper Enrollment forms faxed to CBIZ by: December 6, 2010 Clients will receive an election report via Secure FTP to review. Note:There is a fee of $5.00 per form for manual processing.

16. Plan Document Updates: Health Care Reform: Debit Cards and Health Care Reform Over the Counter Medication Plan Changes: Plan Maximums 2 ½ month grace period and/or run off period Adding Debit Cards Adding Section 132

17. Take Care Card: The Take Care Card is an extra benefit to participants. The debit card is now the preferred way to pay for qualified plan expenses. The IRS regulations mandating the IIAS system for retailers have improved the use and ease of debit card transactions.

18. Take Care Debit Card • Is accepted only at qualified locations • The Take Care Card Program is not a paperless process. Plan participants are required to retain all receipts in accordance IRS guidelines. Because of the tax benefits that FSA plans provide, the Internal Revenue Service (IRS) requires verification that all FSA debit card transactions are for eligible expenses. • Participants are notified by E-mail or United States Postal Service approximately the fifth business day of the month after the card is swiped if a receipt is required or by logging on to myflexonline.com. • Notification will continue to be sent each month until adequate documentation to substantiate the charge is received. • If adequate documentation is not received by the 3rd month after the card was swiped the debit card will be deactivated. • If the charge is not substantiated in 120 days, the purchase is marked as non-qualified expense and the participant must repay the amount. • Once appropriate documentation is received or repayment for the transaction has occurred the card is reactivated • We (CBIZ Flex) order the participants initial debit card. • Participants can order extra debit cards by logging on to myflexonline.com. The first initial extra card order by the participant is at no extra cost. Additional cards cost a $ 5.00 fee. • During the last sixty days of a plan year no new debit cards can be ordered for participants. This is called the “black out” period. Cards for the new plan year will be ordered during the open enrollment period for the new year.

19. Take Care Card (Cont) FAQ’s about Take Care Cards: How will my employees be notified if they have Non-Qualified Expenses (NQE)? A statement will be mailed to the participants approximately the fifth day of the month following the card swipe requesting receipts and/or payments for the NQE’s. The participant has 30 days to submit receipts and/or payment. A second statement will be mailed approximately the fifth day of the second month requesting receipts/payment and notifying them of past due status. The card will be suspended the 15th day of the third month following the swipe. These statements will only be generated if the card swipe requires receipt verification. Example:Participant swipes card on May 7th. First statement mailed on June 5th. Second Notice mailed on July 1st. Card suspended on August 15th. How are debit card swipes handled during the 2 ½ month grace period? Debit Cards are good for 1 year and participants will receive a new debit card at the start of every new plan year. During the 2 ½ month grace period debit cards swipes are applied to any available balance from the prior year first. If there is not a balance available, the swipe will be applied to the new plan year.

20. QUESTIONS