Page 15 - GLG Benefits Guide
P. 15
Flexible Spending Accounts
(FSAs)
GLG provides you with the opportunity to participate in the
following Flexible Spending Accounts: CAUTION! Be sure to use all your
> Healthcare Flexible Spending Account; FSA dollars by the required dates
> Limited Purpose Healthcare Flexible Spending Account; and > The IRS requires that any money
left in your FSA at the end of the
> Dependent Care Flexible Spending Account. year must be forfeited. That’s why
These Flexible Spending Accounts (FSAs) allow you to contribute it’s so important that you plan
your FSA contributions carefully
money on a pre-tax basis to pay for qualiied healthcare—or and conservatively.
daycare-related expenses. They can save you money because you
do not pay taxes on the money you contribute to these FSAs. GLG’s > You can rollover up to $500
FSA plans are administered through Chard Snyder. of unused FSA contributions
(excluding the DCFSA) that
Do you have to elect an FSA in order to participate? remain at the end of the plan year.
Yes. You must enroll for each FSA you wish to contribute to during In addition, such carryovers will
the New Hire Enrollment or Open Enrollment period each year—or not count against the annual limit.
you may do so if you have an eligible qualifying life event. > You will have until March 31st
to submit your claims for the
Can I make changes to my FSA amounts during the year? previous year’s eligible expenses.
Generally, no. The IRS requires that pre-tax beneit elections be
maintained throughout the beneit plan year. You can only make
changes to your elections if you have a qualifying life event. Of
course, you can always make changes to your FSA during Open
Enrollment. (see page 7)
How FSAs Work
> You contribute to your FSA account(s) with pre-tax dollars through convenient payroll deductions. This
means you pay no taxes* (federal, state or Social Security) on your contributions. Your Dependent Care FSA
contributions are subject to state income taxes.
> You pay for your eligible healthcare and/or childcare expenses as usual.
Note: Since you don’t pay Social Security taxes on your contributions, your FSA contributions may reduce your wages reported for Social Security purposes.
* Under N.J.S.A. 54A:6-24, the value of a cafeteria plan beneit is excludable from New Jersey gross income. The FSA beneit cannot meet the New Jersey
requirements for excludability. Accordingly, for New Jersey gross income tax purposes, the employee’s full salary, without reduction, is subject to tax withholding.
15
(FSAs)
GLG provides you with the opportunity to participate in the
following Flexible Spending Accounts: CAUTION! Be sure to use all your
> Healthcare Flexible Spending Account; FSA dollars by the required dates
> Limited Purpose Healthcare Flexible Spending Account; and > The IRS requires that any money
left in your FSA at the end of the
> Dependent Care Flexible Spending Account. year must be forfeited. That’s why
These Flexible Spending Accounts (FSAs) allow you to contribute it’s so important that you plan
your FSA contributions carefully
money on a pre-tax basis to pay for qualiied healthcare—or and conservatively.
daycare-related expenses. They can save you money because you
do not pay taxes on the money you contribute to these FSAs. GLG’s > You can rollover up to $500
FSA plans are administered through Chard Snyder. of unused FSA contributions
(excluding the DCFSA) that
Do you have to elect an FSA in order to participate? remain at the end of the plan year.
Yes. You must enroll for each FSA you wish to contribute to during In addition, such carryovers will
the New Hire Enrollment or Open Enrollment period each year—or not count against the annual limit.
you may do so if you have an eligible qualifying life event. > You will have until March 31st
to submit your claims for the
Can I make changes to my FSA amounts during the year? previous year’s eligible expenses.
Generally, no. The IRS requires that pre-tax beneit elections be
maintained throughout the beneit plan year. You can only make
changes to your elections if you have a qualifying life event. Of
course, you can always make changes to your FSA during Open
Enrollment. (see page 7)
How FSAs Work
> You contribute to your FSA account(s) with pre-tax dollars through convenient payroll deductions. This
means you pay no taxes* (federal, state or Social Security) on your contributions. Your Dependent Care FSA
contributions are subject to state income taxes.
> You pay for your eligible healthcare and/or childcare expenses as usual.
Note: Since you don’t pay Social Security taxes on your contributions, your FSA contributions may reduce your wages reported for Social Security purposes.
* Under N.J.S.A. 54A:6-24, the value of a cafeteria plan beneit is excludable from New Jersey gross income. The FSA beneit cannot meet the New Jersey
requirements for excludability. Accordingly, for New Jersey gross income tax purposes, the employee’s full salary, without reduction, is subject to tax withholding.
15
