How does an FSA work?
• To begin, you decide if you want to participate in a healthcare and/or dependent day care account depending on your employer offerings. Then, you would: • Estimate the amount you will spend on out-of-pocket health care expenses and/or dependent care expenses during the plan year. • Decide how much you wish to set aside into your Healthcare account and/or your Dependent Day Care account. (Be conservative, review your prior year’s expenses and plan only for predictable costs) The amount(s) you wish to set aside is deducted from your paycheck (on a pre-tax basis) in equal amounts each pay period. As you incur healthcare and/or dependent day care expenses throughout the year, you can access your funds by using your PayFlex Card (if offered by your employer) for eligible expenses or get reimbursed for your out-of-pocket expenses by submitting an online claim or by completing a paper claim form and sending to PayFlex via fax or mail.
Once you have enrolled, the amount you have specified is taken from your paycheck each payroll cycle on a pre-tax basis and deposited in your account. You pay your health care and/or dependent care expenses as usual. You submit a request for reimbursement form and receipts to CBCA requesting reimbursement for these expenses. CBCA sends you a reimbursement check drawn on funds from your account. The result of paying for eligible expenses through the FSA plan may be lower income taxes and, often, an increase in take-home pay.
