The Benefits of
Flex
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Today’s Purpose
Introduce the Concept of Pre Tax Benefits
Eligible Benefits: POP & FSA’s
How the Plan WorksWhat’s Next: Your Responsibilities at
Open Enrollment
Common Q & A’s
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Tax Free Benefits
A quick review of how taxes affect your pay.
Your gross pay is taxed first, then your costs of benefits are
withheld. You’re taxed on your entire pay.
Section 125 allows benefit costs to be withheld pre-tax.
Your benefit costs are deducted from your gross pay first, then
you’ll be taxed on the remaining amount.
Bottom line: You’ll save money with flex!
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Your Flex Plan Benefit Choices
Premium Only Plan (POP)
Flexible Spending Accounts (FSA)
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Premium Only Plan
Your cost of eligible benefit premiums can be withheld pre-tax, such
as:
Group health, dental and vision insurance premiums.
Certain voluntary insurance premiums.

You’ll immediately benefit by having more take home pay due to
lower taxable wages.
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Flexible Spending Accounts
Child/Dependent Care FSA
Expenses you incur for the care of your child or dependent that
allow you to work.
Health Care FSA
Out of pocket expenses for you and your family such as co-pays,
deductibles, glasses, prescriptions, chiropractic and dental care.
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Child/Dependent Care FSA
Child care expenses up to age 13;
Or, care of a dependent that is physically/mentally
incapable of caring for him/herself;
The expense must be work related;
Maximum exclusion is $5000 per plan year, calendar
year and household, year for one or more dependent.
If married filing separate tax returns, the maximum is
$2500. Please see guidelines for details.
Remember that you can not claim the child care credit
if you pre tax the expense.
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Health Care FSA
You can include expenses for you and your family,
regardless of the health plan they may be enrolled in.
Think about upcoming dental, vision, healthcare and
prescription expenses you will have.
Do not include expenses that would be for cosmetic
purposes (face lifts or teeth bleaching).
Over the counter drugs & medicines are not eligible unless your
doctor has provided you with a written prescription and you have it
filled at a pharmacy.
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How the Plan Works
Once a year you determine the amount you would like to elect for both
the Health FSA and the Dependent Care FSA.
Remember to consider the types of dental, vision, and other health
expenses you and your family may have. We have worksheets to
assist you in estimating your election.
The amount you elect will be divided by the number of pay cycles you
have in the plan year, and will be withheld in equal amounts - tax free.
Then as you incur expenses, you’ll claim them and be reimbursed tax
free!
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Getting Reimbursed
As you incur eligible expenses you may fax, email, or mail the
expense and claim form to PayPro Administrators. Itemized
receipts must accompany the claim. Claims should show the
nature of service, the date the expense was incurred, your
cost, who provided the service, and the individual the
expense refers to.
Upon receipt of your claim, please allow us up to 3 business
days to have it reviewed and entered for reimbursement.
Reimbursement checks & direct deposit statements are
processed on scheduled days for each plan. You may have a
direct deposit or a regular check.
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More Reimbursement Details
If your plan has the PayPro BenefitsCard, you can use it at the point of sale to
pay for the expense automatically. Save all itemized receipts when using
the card. Many expenses that you pay with the PayPro BenefitsCard will
require us to obtain additional substantiation. If you do not submit those
receipts upon request, your card will be suspended and future claims will be
applied to cover those unsubstantiated items!
The PayPro BenefitsCard only has the ability to process and approve claims
without additional substantiation when it is a direct co-pay match amount. This
is easily done with prescription drugs that match your insurance co pay
amount. Dental and vision expenses, as well as expenses outside the normal
co-pay amount always need to be substantiated. Again, save your itemized
receipts!
The Dependent Care FSA will reimburse you up to the balance in your
account.The Health Care FSA will reimburse you up to the amount you’ve
elected for the plan year, regardless of account balance.
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Important Details
You may only enroll during open enrollment, or upon initial benefits
eligibility. If you are enrolling for a short plan year, please write the
amount you would like to pre tax each pay period - OR - for the
remainder of the plan year.
All expenses must be incurred within the plan year.
Once you’ve enrolled, your election amounts can not be stopped or
changed unless you experience a qualifying “status change.”
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More Details….
Use it or lose it – unused amounts are forfeited, so consider
your election amounts carefully.
If you find you have monies remaining in the account and the
year is close to ending, go spend it! Purchase additional
contact lenses, get your teeth cleaned, etc. Don’t lose it!
By taking advantage of the plan, you’ll pay less in payroll taxes.
That’s awesome, right? This may result in a nominal reduction
in your eventual Social Security Benefits.
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Next Steps
Review the packets provided – they provide full
details. Worksheets and detailed information can be
found at www.pagroup.us
Complete and submit your enrollment form.
If you are already on the plan and are re-enrolling, a
custom form will be provided to you to make
enrollment even easier.
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Contact Information
The plan recordkeeper is PayPro Administrators. They can be
reached by:
Telephone 800-427-4549
Fax 951-656-9276
Email: flex@pagroup.us, Claims@pagroup.us
Please call if you have any questions or need assistance!
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Q & A’s
Will I be taxed on reimbursements?
No. Reimbursements are tax free!
Can I include expenses for my family?
Yes, expenses for your spouse and dependents are qualified under
the plan.
Can I enroll in the plan now and stop later in the year?
Generally no. When you enroll in the plan, it is for the entire plan
year. You are not permitted to stop or change election amounts
unless you experience a qualifying “change in status.”
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Q & A’s
How do I know what my account balance is?
Go to www.pagroup.us and click on Flex Plans, then Employee
Information. You’ll see a login for balance review!
What if I change employment?
You may submit expenses that were incurred prior to your date of
termination for an extended period of time. This may be as little as
30 days - so don’t delay! See plan documents for details.
•
For full details and plan information, please refer to the Plan Documents
and Summary Plan Descriptions.
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