If you are in the PS&T unit, the Flex Spending Account is a program negotiated by PEF and the state to help you save money on your taxes.
The program has two benefits – the Health Care Spending Account (HCSAccount) and the Dependent Care Advantage Account (DCAAccount) – that help you pay for health care or dependent care with pre-tax dollars. And the state may help you pay for your dependent care.
Even if you enrolled last year for 2008, you must enroll again now – between September 22 and November 14, 2008 – if you want to participate in 2009. However, if you experience a qualifying event, such as marriage or childbirth, you may be allowed to enroll or change your level of contributions later.
Go to www.flexspend.state.ny.us or call 1-800-358-7202 to enroll. Enrollment is voluntary. Savings vary.
You may not pay directly for eligible expenses from these accounts. You must pay the expenses first and then submit claims for reimbursement from your flexible spending account.
How HCSAccount works
If eligible, you may authorize any amount from $100 to $4,000 annually in pre-tax dollars be withheld from your pay and set aside in a special HCSAccount. You can then reimburse yourself by check or direct deposit from that account for out-of-pocket medical, dental, vision, or hearing costs not reimbursed by health insurance.
By law, you must lose any money left in the account at the end of the year, so carefully estimate your annual out-of-pocket health care costs and be conservative in setting your biweekly contribution amount.
Examples of allowable costs are: prescription drug copayments, dental implants, and orthodontia fees paid to non-participating providers, deductibles, laser eye surgery, contact lenses and certain over-the-counter drugs and supplies. For a list of these items, go online to www.flexspend.state.ny.us.
How DCAAccount works
If you pay someone to care for your child, elderly parent, or disabled spouse while you work, you may set aside up to $5,000 in pre-tax salary through payroll deduction to reimburse yourself for these expenses.
Expenses eligible for DCAAccount reimbursement include child care expenses (up to age 13), summer day camp, before/after school programs, adult day care, home aide, and housekeeper or cook if they also provide custodial care.
The state will contribute up to $800 to your 2009 DCAAccount. How much it contributes depends on your annual salary. The less you earn, the more the state will contribute.
The 2009 employer contribution rates are:
• $800 for salaries up to $30,000;
• $700 for $30,001 to $40,000;
• $600 for $40,001 to $50,000;
• $500 for $50,001 to $60,000;
• $400 for $60,001 to $70,000;
• $300 for more than $70,000.
If you have additional questions, e-mail them to fsa@goer.state.ny.us.