As part of your benefit program, Macalester offers 0.50 FTE and above employees the opportunity to enroll in flexible spending accounts (FSAs) that allows you to pay your eligible health care or dependent care expenses on a pre-tax basis.
Flexible Spending Account Limits
- $2,500 per calendar year limit for Health Care Reimbursement Account
- $5,000 per calendar year limit for Dependent Care Reimbursement Account
Important Updates to Health and Dependent Care Flexible Spending Accounts
There are several new pieces of legislation related to Health and Dependent Care Flexible Spending Accounts to provide greater flexibility for participants. Macalester has elected to implement the following changes for the 2020 and 2021 plan years:
Dependent Care Flexible Spending Accounts:
- Allow an unlimited carryover of unused dependent care flexible spending account funds from calendar year 2020 to 2021 and from calendar year 2021 to 2022.
- Allow an employee to make up to two changes to their dependent care flexible spending account elections during calendar year 2021.
- Permit employees no longer participating in the dependent care flexible spending account during calendar years 2020 and 2021 (i.e. after termination) to receive reimbursement for unused contributions until the end of the current plan year.
- Increase the maximum age under dependent care flexible spending accounts from 12 to 13 for the 2021 plan year subject to dependent aged out during the pandemic.
Health/Limited Flexible Spending Accounts:
- Allow an unlimited carryover of unused health/limited flexible spending account funds from calendar year 2020 to 2021 and from calendar year 2021 to 2022.
- Allow an employee to make up to two changes to their health/limited flexible spending account elections during calendar year 2021.
- Permit employees no longer participating in the health/limited flexible spending account during calendar years 2020 and 2021 (i.e. after termination) to receive reimbursement until the end of the current plan year for unused contributions.
These changes have been programmed into HR Simplified’s (FSA vendor) systems and are available now. All remaining balances from calendar 2020 have been rolled over to 2021. If you have questions or would like to change your dependent care or health/limited flexible spending account election you can reach out to Jason Dempster at firstname.lastname@example.org or Randi Hartman at email@example.com.
Initial Account Setup
If you do not already have an existing online account established with HR Simplified, your account information – account balance, reimbursement activity, and claim status – can be accessed on our secure website, www.hrsimplified.com, 24/7. To access your account online you will first need to register and create your online account. During the registration process you will be asked for the Employer and Employee ID. The IDs are provided below for your convenience.
- Employer ID: HRSMACAL
- Employee ID: Your Full Macalester Employee ID
For security purposes the digits displayed are the last four digits of your Macalester Employee ID. Once you have established your online account, you will be able to log in with the user ID and password that you have created.
All participants must re-enroll annually. You will save money when you use pre-tax dollars to reimburse your eligible health care expenses. If you enroll in the flexible spending account, your elected contributions will be deducted from your pay and will not be subject to federal income tax, state income tax, or social security (FICA) taxes. When your taxable income is reduced, your taxes are also reduced.
The key to the effective use of the flexible spending account is planning. You must anticipate what your medical expenses will be for the coming year and set aside enough money to cover them. You decide how much money you will contribute annually (based on a calendar year) to your account. The annual amount will be divided by the number of pay periods (12 for monthly paid employees and 24 for bi-weekly paid employees) and deducted on a pre-tax basis each paycheck during the plan year (from the first two paychecks of each month for bi-weekly paid employees). Twice during the year, bi-weekly paid employees will receive three checks during the month; there will be no deductions for flexible compensation choices from the third check of the month. The contributions you designate will be credited to a bookkeeping account on your behalf. This account will be used to reimburse you for eligible health care expenses for you and your eligible dependents which are not reimbursed by another source, such as insurance, another reimbursement plan, or a state agency.
Annual $500 Carryover
Employees can now roll over up to $500 of unused healthcare FSA dollars into the next plan year instead of simply “losing it.” This new feature provides more flexibility to spend FSA money when participants need it. The dollars can be used for necessary out-of-pocket healthcare expenses, and helps to ease the last minute and potentially unnecessary spending at the end of the year. This $500 carryover is an automatic feature of your Health Care FSA plan, if you would like to opt-out, please complete the Rollover Opt Out Form. Any amounts left in your Health Care FSA plan above the $500 carryover limit will be forfeited at the end of the plan year.
HR Simplified will provide debit cards to all new FSA participants. Existing FSA participants should retain their debit cards as they are only replaced every 3 years. These debit cards can be used with most providers to directly pay for services from the funds available in your flex account. For those providers that do not accept debit cards, claims can be submitted manually using the FSA Claim Form (listed below) or directly through HR Simplified’ s online portal. Claims are paid out daily as received.
*Note: Per IRS rules, HDHP/HSA Health Plan members are limited to dental and vision expense reimbursements only until the IRS minimum health plan deductible of $1,300/single or $2,600/family is satisfied (a “limited” flex).
Because your contributions are pre-tax, federal regulations limit your ability to change your elections during the calendar year. You may only change your elections during the calendar year if you experience a change in status event. Before requesting a change to your current election during a plan year, contact Employment Services to check your eligibility.
- You may use your debit card to directly pay for expenses from your FSA.
- Manual reimbursements may be submitted online (www.hrsimplified.com). You may access and complete the necessary forms, attach documentation and send it via online, fax, mail or mobile.
- You must submit claims for reimbursement by March 31 of the following calendar year. However, if you terminate employment you must submit claims for reimbursement within 90 days after your date of termination.
- Visit hrsimplified.com
- Call HR Simplified Customer Service at 1-888-318-7472 (Toll Free)
Monday-Thursday from 7 a.m. – 7 p.m. (central time), Friday from 7 a.m. – 5 p.m. (central time)
- Email at FSA@hrsimplified.com
- FAQ: HSA & FSA Comparison
- FAQ: Health Care Flexible Spending Account (PDF)
- FAQ: Limited Health Care Flexible Spending Account (PDF)
- FAQ: Dependent Care Flexible Spending Account (PDF)
- FAQ: Dependent Care Flexible Spending Account – Debit Card (PDF)
- FAQ: Dependent Care Flexible Spending Account – Manual Claims (PDF)
- FAQ: FSA Debit Card (PDF)
- FAQ: $500 FSA Rollover (PDF)
- FSA – Eligible Expense List (PDF)
- FSA – Online User Guide (PDF)
- FSA – Mobile App User Guide (PDF)
- FSA – Mobile Text Messaging Set-Up (PDF)
- Qualified Medical Expense Tool
- Video – What is a Flexible Spending Account
- Video – What is a Dependent Care Flexible Spending Account
- Video – How my FSA Debit Card Works
- Highlights: Section 125 Cafeteria Plan (PDF)
- Summary Plan Description: Section 125 Cafeteria Plan (PDF)
- Plan Document: Section 125 Cafeteria Plan (PDF)