Your Benefits. Your Money.

Your Health Care FSA

At the beginning of each plan year, your employer deposits into your account the total amount you chose to contribute to your Health Care FSA. You then pay your account back throughout the plan year from your pre-tax contribution taken from each paycheck. Once the money is deposited into your account, it is immediately yours to spend whenever you choose during the plan year, on a wide range of health care needs like those listed in the eligibility list.
 
By using the WageWorks Health Care Card and Pay My Provider feature you could conceivably use the entire balance of your FSA without once paying out of your pocket for an eligible health care item or service. Just swipe the WageWorks Card almost anywhere it is accepted to pay for eligible health care expenses. Or use Pay My Provider to make direct payments online — and even schedule automatic payments for regular appointments like the orthodontist. You can also use Pay Me Back when you do pay out of pocket to send in traditional claims for quick reimbursement.

Your Dependent Care FSA

Unlike the Health Care FSA, your Dependent Care FSA is funded incrementally during the plan year from the amount you contribute pre-tax from each paycheck. Even if your account is not sufficiently funded, you can still submit claims for dependent care whenever you choose throughout the plan year. Reimbursements are paid based on your balance at the time the claim is approved. Like with your Health Care FSA, you can also reduce out of pocket spending by using Pay My Provider to schedule payments directly to your caregivers, for services such as those listed in the Dependent Care Eligibility List.

Choose what works best for you

You can enroll in one or both FSA accounts:

	Health Care spending account
	Dependent Care spending account

Your participation in the FSA program is always voluntary — but you must sign up each year to take advantage of all it has to offer.

Easy as a debit card

Wondering if an FSA might be a hassle? Don’t. This program is built for maximum convenience, from on-the-spot access with the WageWorks Health Care Card, to great timesaving features like direct payments to providers and easy online tracking.

Your WageWorks Health Care Card

With swipe and go convenience, the WageWorks Health Care Card (the Card) makes it easy to use your Health Care FSA to save big on eligible items and services you use every day.

Use your Card like you would your bank credit card wherever it's accepted. The money is drawn directly from your FSA, which eliminates the need to pay first and be reimbursed later. And thanks to new rules by the IRS, your Card will only be accepted at merchants that have a system in place that is specially designed to work with the Card. Such systems (known officially as Information Inventory Approval Systems or IIAS) automatically verify the eligibility of your purchase at checkout, which means you won't have to submit receipts to WageWorks to verify your transactions. In some situations you may have to submit receipts after a purchase, like when using the Card at a doctor's offices or hospital for anything other than a copay.

Visit www.sig-is.org to find out everywhere the Card is now accepted and the WageWorks Card Resource Center to learn more about the Card and how we've made it even simpler and more convenient to use.

Tax savings: See for yourself

How much you save depends on how much you spend on health and dependent care, and on your tax situation. For every $100 of eligible expenses, most people will save from $30 to $40 in taxes. Click here to calculate your own savings or here for some real-world examples on how you can save.

Pay for hundreds of expenses — tax-free!

You can use your FSA to save on hundreds of products and services for you and your family. Eligible expenses are defined by the IRS and your employer.

Typically, your Health Care Account covers:

	Prescriptions for almost any medical condition
	Over-the-counter health care products like allergy medicine, antacid, antibiotics, aspirin…(and that’s just through “a”)
	Co-payments, co-insurance, and deductibles — but not insurance premiums
	Dental care, both preventive and restorative
	Orthodontia, child and adult
	Vision care, including eyeglasses, contact lenses, and saline solution
	Eye surgery, including laser vision correction
	Counseling and therapy
	Psychology and psychiatry
	Chiropractic care, acupuncture, and some other alternative treatments

Your Dependent Care FSA covers these types of expenses
(for your eligible dependents while you work:)

	Babysitting or au pair services
	Before- and after-school programs
	Day care and nursery schools
	Pre-school programs
	Elder care services

Who's Eligible, What's Eligible

Getting to know your FSA program

Who’s covered, what’s covered

First, the rules 

Each year, you can use the funds you set aside in your FSA to pay for hundreds of eligible expenses for yourself and your eligible dependents. But before you pay, make sure you know the rules, who’s covered — and what’s covered. The IRS regulations are extensive, but the basic rules are clear:

Who’s covered?

Yourself, your spouse, and any children or other individuals you can claim as dependents on your tax return.

Proof of expense. To validate an eligible expense for the IRS, you must be able to provide appropriate third-party proof that you incurred it — such as a provider receipt, invoice, payment contract, or an Explanation of Benefits (EOB) from your health plan. This document must show the name of the qualified individual who received the service or purchase for any expense other than over-the-counter items. A debit card receipt by itself is not sufficient.

Who’s covered?

Proof of expense. To validate an eligible expense for the IRS, you must be able to provide appropriate third-party proof that you incurred it — such as a provider receipt, invoice, payment contract, or an Explanation of Benefits (EOB) from your health plan. This document must show the name of the qualified individual who received the service or purchase for any expense other than over-the-counter items. A debit card receipt by itself is not sufficient.

What’s eligible?

	Expenses for health care: Generally, services and products that are medically necessary to treat a specific condition are considered eligible health care expenses. Cosmetic or non-medical expenses are not eligible.
	Expenses for dependent care: These typically include care provided for your qualifying child (under age 13) or other qualifying dependent, while you work or to enable you to work. Your care provider must meet state and local laws and provide his/her Social Security or Tax ID number.

FAQs on Your FSA.*

Are there any fees for the program?

Not to you. The fees for the program are entirely covered by your employer as part of the benefits package you receive. You pay absolutely no fees for your FSA, to WageWorks or your employer.

How does “pre-tax” savings work?

The money that funds your account comes from your paycheck throughout the year, and is taken out before federal income taxes, FICA (Social Security), and state income taxes (in most states) are calculated. Because you never pay taxes on this money, you can see your savings on your paycheck — in the form of reduced tax withholding.

Do I have to report this on my tax returns?

Not for health care expenses. The IRS does not require any reporting for this type of program. However, if you choose the dependent care FSA option, you will need to identify your provider when you file your tax return — just like you would to take the Dependent Care Tax Credit.

What if I use my FSA for an expense that’s not eligible?

If you accidentally pay for an ineligible expense with your account, you’ll be contacted for more information about the payment. If it is determined to be ineligible, you’ll receive options for resolving the expense.

How will I know how much money I have in my account?

You can get up-to-the-minute account information at any time through www.wageworks.com or by calling 877-WageWorks (877-924-3967) Monday through Friday, from 8 a.m. to 8 p.m. Eastern Time. You’ll also receive a monthly statement.

Is it true that I have to “use it or lose it?”

The IRS requires that any remaining balance be forfeited at the end of the plan year (or the following grace period, if your employer allows one). Plan carefully to minimize the chance of forfeiting any money: be careful of how much you set aside in the first place, and keep an eye on your account balance as the year goes by.

*No part of this document is tax, financial, or legal advice. You should consult your own advisors regarding your personal situation and whether this is the right program for you.