What is a Cafeteria Plan?
IRS code Section 125, allows employers to adopt a plan in which employees, through salary reduction, can pay for eligible benefits and medical or dependent care expenses on a pre-taxed basis.
Employees who purchase group insurance and other benefits through the company greatly reduces the cost, offering your employees a great benefit for their dollar. In addition, putting those benefits along with other allowed benefit (i.e. Dependent Care and Unreimbursed Medical expenses) under a qualified plan can offer a substantial tax savings for the employee and employer.
Your Plan includes:
How Your Plan Works
A Cafeteria Plan is a valuable benefit that allows you to pre-tax, or exclude from W-2 wages, eligible benefits such as health insurance premiums, dental or vision plans, as well as Flexible Spending Accounts “FSA” dependent care expenses, and out-of-pocket FSA medical expenses.
Login to complete your enrollment selections.
As you make your Cafeteria Plan selections, when you a qualifying benefit/insurance, this will auto selects the Cafeteria Plan and your eligible insurance premiums will then be deducted on a before tax basis. This will lower your W-2 reported wages by the amount of the premium(s) and give you an increase in spendable income.
Once the Plan Year begins you will not be allowed to make any changes to your election unless a Status Change occurs, as election under a Cafeteria Plan are irrevocable for the Plan Year, unless you qualify for a Status Change.
FLEXIBLE SPENDING ACCOUNTS “FSA”
Dependent Care Expenses
If you have qualified dependents that require care while you and/or your spouse work, participation in this account will save you valuable tax dollars. Expenses include day care, after school care, nursery school, pre-school and summer day camp.
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- The deduction of Dependent Care offers each employee a tremendous tax savings. If you currently have these expenses, it may be to your benefit to take advantage of the plan. All requests for reimbursement are processed the same day they are received by SABC, (based on funds availability). Simply determine the election amount for the above Plan Year, for your Flexible Spending selection.
- Elections cannot exceed the annual maximum for Dependent Care of $5,000 (filing a single or joint return) and $2,500 (married filing a separate return).
- Just select the Dependent Care FSA option in the SABCFlex Open Enrollment and identify the Care Cost you will incur for the Plan Year. Care may include registration fees.
UNREIMBURSED MEDICAL EXPENSES (URM)
If you, your spouse or qualifying dependent(s) have medical expenses, which you have to pay out of pocket such as; medical deductibles, co-insurance, co-pays, prescription drugs, dental expenses or eye care expenses, you will save valuable tax dollars by participating in this spending account. Our plan has the following features:
- FSA Unreimbursed Medical maximum, $2,750 Plan Year. (increased for 2020-2021 Plan Year).
- Voluntary Final Pay Deduction of my FSA Medical If I participate in the FSA Unreimbursed Medical and I terminate. Unreimbursed Medical (URM) participants will make an election to participate in the Unreimbursed Medical Spending Accounts for the plan year. Your total election is available to you at any time during the plan year when you incur an expense(s). You must participate in the Unreimbursed Medical portion of the plan for the whole plan year. Your total election is available to you anytime during the plan year when you incur an expense(s). Should you terminate anytime during the plan year, in lieu of COBRA; your remaining election will come from your last paycheck. Expense claims may be for you and/or an eligible family member, (based on the IRSs, definition of a dependent for Dependent Care and Dependent Adult “to” age 27 for Unreimbursed Medical). Should you have Unreimbursed Medical funds remaining at the end of the Plan Year, your Plan offers a Grace Period. This is a 2 ½ month extension to incur medical expenses, which ends on March 15th, of each year, extending your benefit period.
- Follow the close of the Grace Period, your plan offers a sixty (60) day run-out period, to request reimbursement for qualified expenses incurred during the benefit period.
- YourFlexibles Spending Account for Medical offered with through SABC, offers a Debit Card for your convenience to use for your out-of-pocket Unreimbursed Medical Expenses. This card is called the SABCFlex Card. This card can be used for pharmacy prescriptions, medical doctor visits, (non-cosmetic), co-pays, co-insurance, deductibles, dental expenses (non-cosmetic), vision expenses and medical items. (No over-the-counter-drugs).
- Please note, use of the SABCFlex Card is not a paper free process, just easier to get your medical expenses paid at the point-of-sale. Some expenses incurred with the card may require to be validated. You will be notified by email, when it is necessary for you to provide documentation to validate your incurred expense and remit it to SABC
- Using the SABCFlex Card and Validating Expenses. After the swipe of your SABCFlex Card, you may receive an email requesting you substantiate medical expense, based on your swipe. You will then need to provide SABC with a paper statement of services received, and/or (in many cases), an Explanation of Benefits from the insurance company based on the expense. Should you fail to do this, you will get another notification reminder to do so. (Giving you 50 days to validate a card swipe). Should you fail to do this, the card could be suspended until such time as the paper substantiation for the swipe has been submitted. To select the card option, you need only to choose it on SABCFlex Online.
Cafeteria Plan elections are irrevocable for the Plan Year. Once you have made your selection, you must have a qualifying Status Change in order to change your benefit, once the Plan has started.
How to Login to Flexible Spending Plan?
Note: If you are currently an FSA Participant, and have already registered with the SABCFlex Portal site, you may find it easier to login using the below option, and you may use your created User Login and Password.