FLEX: How Spending Accounts Work

Each year during an open enrollment period, employees are given the opportunity to participate in a variety of voluntary benefit programs including, when available, a Flexible Spending Account Program. As an employee, when you decide to participate in your employers FSA program there will be several things you will need to do:

1. Complete an election form identifying the amount of pre-tax salary to have set aside each pay period
2. Submit a signed/completed form to authorize your employer to make your requested pre-tax deduction. These payroll deductions are placed in your spending account each pay period during the plan year.
3. When and expense is incurred, they employee must submit a claim form to your Spending Account Administrator requesting reimbursement of the expense from the spending account. The claim form must be accompanied by documentation (i.e., receipts or Explanation of Benefit notices) that identifies the provider name, the dates of the service, a description of the service and/or name of the medication and the total amount of the claim. Claims may be submitted any time during the plan year.
4. Following receipt of a claim for reimbursement, the Spending Account Administrator will produce a check to the employee in the amount of the claim, using the tax free money in the spending account. Employer can stipulated a minimum reimbursement amount whereby the Spending Account Administrator will not issue you a check until the minimum has been reached.

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