Flexible Spending Accounts (FSAs) allow employees the opportunity to pay for qualified out-of-pocket healthcare expenses and work-related day care expenses with tax-free dollars, thus increasing their take-home pay. Plus, participants are better prepared when they need to pay for health care expenses during the year.
Participants submit claims for eligible expenses incurred throughout the year that are reimbursed from their FSA up to the amount of the employee’s annual election. An employee's election cannot exceed maximum amounts allowed under IRS limits. Omnify administers participants' FSA accounts at no additional cost to employees.
Health Care FSA accounts are used to reimburse participants for a variety of eligible medically-related expenses incurred by the employee and their eligible family members. Eligible expenses include everyday items like contact lenses and over-the-counter medicine, annual deductibles, office visit copays, and prescription drugs, as well as high dollar expenses such as surgery, orthodontia, hearing aids, and Lasik surgery.
Insurance premiums (including private insurance premiums) are not eligible expenses under a FSA. Employee group health, dental and vision premiums are pre-taxed under the College's Flexible Compensation Plan.
Omnify debit cards
All Omnify health care FSA participants receive an Omnify Card that can be used like cash to pay for eligible expenses. When participants use the Omnify Card, the money comes right out of the established Omnify health care account, not their own pocket, improving cash flow.
IMPORTANT: Participants must comply with IRS guidelines by using the Omnify Card ONLY for qualifying expenses and must be prepared to provide Omnify with appropriate documentation to substantiate expenses upon request. Participants have the option of submitting a claim for reimbursement through the Omnify Benefits Mobile app or website.
Dependent Care FSA accounts are used to reimburse participants who pay for dependent care expenses that are necessary in order for the employee to work; or if married, the care must be necessary because the employee's spouse also works or is a full-time student. This includes preschool, nursery school, daycare expenses, before and after school care and summer day camp for children age 12 or younger that the employee is entitled to a dependency exemption, or for the employee's spouse (or dependent) who is physically or mentally incapable of self-care. See IRS Publication 503.
IMPORTANT POINTS TO REMEMBER:
- According to IRS regulations, PayFlex accumulations not used during the Plan Year (January 1 - December 31) are forfeited by the employee under the "use it or lose it" rule.
- Under the Grace Period, active employees have an additional two months and 15 days following the end of each Plan Year (March 15) to incur eligible medical, dental, vision and hearing expenses, as well as eligible daycare expenses to help avoid forfeiture of unused contributions.
- Employees may start, stop or change their annual Omnify election once per year during open enrollment.
- Mid-year election changes are allowed only if the employee, his/her spouse, or dependent child experiences a "qualifying life event" such as marriage, birth of a child, divorce, death of spouse or dependent, or change in employment status of employee or spouse. It is the employee's responsibility to contact Human Resources within 30 days from the date of the event, and the request must be consistent with the life event that has taken place.
HR contact: Julie Nohrenberg, 531-622-2232 or Cindy Croy, 531-622-2231.