The following is an excerpt from the Goodwill Industries of Northwest North Carolina 2018 Benefits Summary. For more information, click here.
Flexible Spending Account
What is it?
Goodwill’s Flexible Spending Account (FSA) plan offers full-time regular employees the opportunity to set aside money from each paycheck before taxes are taken to be used for certain dependent care and unreimbursed health care expenses, as well as non-Goodwill health insurance premiums in the employee’s name. Section 125 of the Internal Revenue Code allows Goodwill to provide this pre-tax benefit; however, it also locks the participant into the benefit as well as the payroll deductions until the next open enrollment period unless a qualifying event occurs. Please note that the IRS has set a limit of $5,000 per year for reimbursable dependent care expenses.
The FSA plan allows you to pay for certain expenses throughout the year in installments. It reduces your amount of taxable income, thereby saving you money. It is important that you only use this for definite expenses since the money cannot be refunded. If you have childcare payments, take maintenance medications or have scheduled a medical procedure, the FSA plan may be a good option. Visit the company intranet or contact Human Resources for details about acceptable and unacceptable costs.
Here’s how it works: You have a surgery scheduled in June that will cost you $1,300 out of your pocket. Goodwill splits up the large cost into a per pay period amount and withholds $50 (for an hourly paid employee) from each paycheck for the entire year. (Pretax, so it feels like less!) When you get the $1,300 medical bill, you send it to our Flexible Spending Account administrator along with valid receipts/statements and a reimbursement is made to you. You can enroll in the FSA plan as a new hire or during our
annual open enrollment. Changes to the plan throughout the year are allowed only if a qualifying event occurs (birth, marriage, divorce, etc.).
Rollover: Goodwill offers a rollover option. You may rollover $500 to the following year; however, all other unused funds will be forfeited. See summary plan description for filing details.
Debit Card: Goodwill offers a Visa Debit Card option (Medical Plan only), as well as Direct Deposit and check, for FSA reimbursements.
Please note that the information provided, while research-based, is not guaranteed for accuracy and legality. Please seek legal assistance, or assistance from state or federal governmental resources, to make certain your legal interpretation and decisions are correct. This information is for guidance, ideas, and assistance.