Save on Taxes with Flexible Spending Accounts
Debit-Style Card Makes Reimbursements Easy
Employees with flexible spending accounts will be issued a WageWorks Debit Card. Your WageWorks Debit Card will work just like other debit cards to pay for eligible expenses without using the cash in your pocket or bank account.
You may only use the card to pay for qualified, un-reimbursed medical expenses at locations that accept MasterCard (many doctor's offices and pharmacies accept the card). Charges of any unqualified expenses or vendors will automatically be declined. If the provider or vendor you are using does not accept MasterCard, you pay for the services and products, keep your receipts, and file a claim for reimbursement through WageWorks.
WageWorks may send you a letter or e-mail requesting receipts to substantiate a debit card purchase. You MUST save all receipts and submit them to WageWorks if requested. Failure to submit receipts may result in deactivation of your card.
The limit on your WageWorks Debit Card is the amount established by your annual enrollment form. WageWorks sends a monthly statement to you via e-mail. So make sure they have an up-to-date e-mail address for you.
In addition to the debit-style card from WageWorks, you can also spend the money in your flexible spending account through traditional claims reimbursement or through a bill pay service directly to providers (an online payment system that allows you to set up and manage automatic payments).
For additional information, contact your benefits office.
Have WageWorks Pay Your Health Providers Directly
You can choose an amount to be paid to your health care provider directly by WageWorks. WageWorks will deduct the specified amount from your FSA (provided there is sufficient balance) and will mail the payment to the health care provider you specify. This is an especially convenient payment option if you have regularly scheduled expenses from a single provider. You can create your own direct payments by logging onto your account at www.wageworks.com.
To set up the service, you must provide the following:
- your e-mail address
- provider's billing name and address
- patient's name
- type of service provided
- payment amounts (must be $20 or more).
Making Changes to Your Flexible Spending Accounts During the Year
If you have certain changes in family or employment status during the year, you may initiate, change or stop contributions to the health and dependent care flexible spending accounts to the extent consistent with the status change. Such status changes are defined by the IRS and include: your marriage or divorce or legal separation, the birth or placement for adoption of a child, the death of your spouse or dependent, the termination or commencement of your spouse's employment, the change from part-time to full-time employment status (or vice versa) by you or your spouse, and the taking of an unpaid leave of absence by you or your spouse. You are required to provide documentation of the status change within 30 days of the change.
Effect of FSAs on Social Security Benefits and Other USC Benefits
Because the amount you set aside in a flexible spending account is not taxed for Social Security purposes, your future benefit from Social Security may be reduced slightly. However, USC benefits based on your regular annual pay, such as life insurance and the retirement plan contributions or benefits will not be affected.
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