City & County of Honolulu’s · Salt Lake City, UT Dallas, TX Honolulu, HI San Diego, CA ......
Transcript of City & County of Honolulu’s · Salt Lake City, UT Dallas, TX Honolulu, HI San Diego, CA ......
City & County of Honolulu’s“City Flex”
Flexible Spending Program
National Benefit Services, LLC
Third Party Administrator
Who is National Benefit Services, LLC?
Salt Lake City, UT Dallas, TX Honolulu, HI San Diego, CA
Who is National Benefits Services, LLC?
• NBS has been working with employers in Hawaii for over 15 years, including:
- State of Hawaii
- City & County of Honolulu
- Many other private sector ERs
What is a Limited Purpose Flexible Spending Account? (LFSA)
The Basics
By enrolling in the City Flex Plan offered through NBS, city & county employees can save money on taxes by using their FSA dollars for everydayeligible expenses.
The most important feature of a the FSA benefits is that they allow you to pay for expenses you already plan on incurring, but you are able to pay for those expenses with pre-tax funds which allows you to increase your take-home pay.
Medical FSA:
▪ Maximum annual limit is $2,400
Dependent Care FSA:
▪ Maximum annual limit is $5,000 per year or $2,500 if you are married and filing separately
City Flex Benefit Options
Employee Sample Savings
$926 in savings
Save on Taxes!
An employee, Susan, has one child attending preschool.
She pays her pre-school provider $400/month.
She is paid twice per month so she pays her preschool provider $200 every paycheck.
No HSA With HSA
Salary $36,000 $36,000
Contribution — $3,350
Taxable Income $36,000 $32,650
Taxes $9,954 $9,028
MedicalExpenses $3,350 —
SpendableIncome $22,696 $23,622
$926 in savings
$1441 in annual savings
No FSA With FSA
Gross Pay $1,200.00 $1,200.00
Contribution — $200
Taxable Income $1,200.00 $1,000.00
Taxes $261.41 $201.36
Net Pay $938.59 $798.64
Preschool Expense $200.00 —
SpendableIncome $738.59 $798.64
Employee Sample SavingsWhy Participate?
Eligible Medical FSAExpenses
Medical Deductible Expenses
Copays (office visits, lab work, etc)
Prescription Drugs
Chiropractic Care
Acupuncture
Physical Therapy
Individual Counseling/Therapy
First Aid Items
Diabetic Supplies
Vaccinations
Hearing Aids & Batteries
Dental Copays
Cleanings
Fillings
Crowns/Bridges
Dentures
Orthodontia
Vision Eye Exams
Lenses/Frames
Contact Lenses
Contact Lens Solution
Lasik Eye Surgery
• Cosmetic Surgeries/Procedures
• Vitamins & Supplements
• Massage Therapy
• Teeth Whitening
• Over-the-counter drugs (unless a prescription is provided)
Ineligible Expenses
• Eligible dependents include your spouse and any children up to the age of 26
• Your election must continue for the full plan year unless you have a qualified event for a change of status
• Marriage, birth, death, divorce, etc.
• Annual election is available upfront
• Consider pairing the FSA benefit with medical plans that offer a lower premium and higher out of pocket deductible
Medical FSA: Things to Consider
Day Care Facilities
Preschool
Before and After School Care
Day Camps
Baby-sitter (neighbor, friend, family)
Adult Day Care
Eligible Dependent Care FSA Expenses
• Eligible dependents are your children under the age of 13
• Other dependents may qualify if they are a dependent on your tax return and incapable of self-care
• In order to be eligible, you and your spouse must both be working (or spouse must be going to school full-time)
• Funds are available as they are withheld
• Education expenses do not qualify
• Examples: summer school, private school tuition, Kumon, Japanese lessons.
Dependent Care FSA: Things to Consider
• Plan Year
• July 1st – June 30th
• This is the time period funds will be withheld. It is also when your expenses must be incurred.
• Run-out Period
• Last day to submit claims for prior year expenses
• 90 days after plan year ends (September 28th)
Important Plan Year Deadlines
When you use your NBS Card, the merchant code identifies the type of expense and allows you to use your card for eligible expenses.
Keep receipts if you use your card in case of an IRS audit or in case NBS needs more information to adjudicate your expense.
If you have a card from last year, you will use the same card in the new plan year.
Cards can be issued for spouses or dependents for no additional charge.
Use your NBS Card for FSA Medical Expenses
Participant self-service overview
▪ Check your balance
▪ Manage communications and alerts
▪ Access to education and planning tools
▪ Replace debit cards
▪ Submit claims
▪ Review your transaction history
Participant Portal:
my.nbsbenefits.com
Mobile applications▪ Supports Apple and Android
smartphones and tablets
▪ Shared username and password with [my.nbsbenefits.com]
▪ View account balances
▪ View transaction history
▪ Attach receipts
▪ Submit claims by taking pictures of your receipts
▪ Edit Alerts
▪ Contact Administrator
▪ Includes new virtual assistant “Emma”
Mobile Account Access
You can submit a claim form for reimbursement either online, through our mobile app, via fax, mail or email.
The easiest way to submit your claims is online at my.nbsbenefits.com or through our mobile app.
You can also elect to have your reimbursement deposited directly into your checking or savings account by enrolling in direct deposit.
Manual Claim Reimbursement
• Monthly fee is $6.00, whether you participate in one or both FSA’s (Dependent Care & Medical Reimbursement)
• The fee is deducted from your paycheck on a pre-tax basis ($3.00 per paycheck)
• Break even point is an annual election of about $240 (considering you will see a tax savings of about 30%)
• Tax savings and monthly fee work out to be about $72
Administration Fee
• Forms must be faxed, emailed, or postmarked no later than May 31st
• Send your forms directly to NBS
*Do not turn your form into your personnel office
• Forms can be sent by fax, email, or mail (details are provided on the enrollment)
• Visit www.nbsbenefits.com/cityofhonolulu for all OE information!
Open Enrollment:May 1st – May 31st
What is a Limited Purpose Flexible Spending Account? (LFSA)
How Can I Contact NBS?
• Our service center is available from 6am MST through 9pm MST
• Equivalent to 2am HST through 5pm HST
• Contact NBS directly:
- Local # (Oahu): 465-2284
- Toll-free #: (855)399-3035
- Email: [email protected]
• Walk-in visits: 1314 S King St., Suite 326
• City Flex Website: www.nbsbenefits.com/cityofhonolulu
Questions?