Eligible employees may choose to participate in the Flexible Spending Accounts Plan (FSAs) allowed under Section 125 of the Internal Revenue Code.
Under the FSA Plan, eligible employees may redirect a portion of their pay check each month (except July and August) to their own personal Health Care FSA and/or Dependent Care FSA. The money redirected to the FSA will never be subject to Federal, State, Social Security or Medicare taxes.
As a participating employee incurs eligible out-of-pocket health or dependent care expenses, he/she simply pays the bill and submits a claim to the FSA Plan administrator for reimbursement. All employees must, within 31 days of becoming eligible, indicate whether they wish to participate in the FSA Plan.