Big Sandy ADD provides a Flexible Spending Account (FSA) program that allows employees to have pre-tax dollars deducted from their salaries to pay for eligible out-of-pocket expenses. The pre-tax contributions made to the FSA can be used to pay for predictable non-reimbursed health care expenses and dependent care expenses during the plan year. Through the FSA program, you can reduce your taxable income without reducing your real income, so that you can keep more of the money you earn.
Employees in the following employment classifications are eligible to participate in the Flexible Spending Account program:
* Regular full-time employees
* Regular part-time employees
Participation in the Health Care and/or Dependent Care FSA is optional and determined on an annual basis for the plan year. You must enroll for each plan year. You determine how much to contribute to the account, up to a specified maximum, based on anticipated expenses during the plan year. The maximum contribution for your Dependent Care FSA is $5,000 dollars per year. Contributions are directed to the FSA through salary reduction on a pre-tax basis. This tax-free money is then available to you for reimbursement of out-of-pocket expenses upon presentation of a receipt to the Accounting Department. Since the amounts that remain in the account at the end of the plan year are forfeited, you should take care not to over-fund your account.
Details of the Flexible Spending Account program are described during your employment orientation.