INCREASE YOUR TAKE HOME PAY

Many plans are coming up for reenrollment and employees will be asked to make their elections for the new plan year. For those employees that are are already in Flexible Spending (Unreimbursed Medical and/or Dependent Care) it is time to start estimating your expenses for the new plan year. For participants that are not in Flexible Spending, now is the time to review your expenses so that you too can increase your take home pay. Please take the time to read the following information.

Insurance Premiums (Premium Only Plan)

Most employees already take advantage of the pre-taxation of their health and other insurance premiums. By signing to participate, your current eligible insurance premiums are deducted tax free. This frees up dollars to invest, pay for other benefits, reduce the cost of current benefits, or to spend at your leisure.

If you are not participating in this portion of the plan, be sure to attend your scheduled enrollment so that you can receive that much needed raise.

Example: A participant spending $1,500 a year on qualified payroll deducted insurance premium can save an average of $420.00 in taxes.

Unreimbursed Medical Spending Account

This spending account allows you to set aside money, before taxes, through regular payroll deduction. During the year, the plan reimburses you directly from your account for qualified healthcare expenses you have paid that are not covered by insurance. Commonly used expenses are: Co-pays, Deductibles, Doctor visits, Prescriptions and Medical supplies, Eye surgery, Glasses and Contacts, Dental and Orthodontics and Chiropractor services.

Example, A family spending $800.00 a year on out of pocket medical expenses will save an average of $224.00 in taxes.

Dependent Care Spending Account

This account reimburses you for qualified daycare expenses for eligible children and adults. Qualified dependent care expenses are those expenses that are necessary for you and your spouse (if married) to be gainfully employed. Through regular payroll deductions, you set aside part of your income to pay for these expenses on a tax-free basis. Simply estimate your dependent care expenses for the new plan year, up to a maximum of $5,000 per calendar, ($2,500 if married and file a separate return.)

Example: A family spending $5,000 a year in qualified dependent care expenses will save an average of $1,400 in taxes by participating in this plan. If your family's annual income is over $20,000, this option will likely save you more money than the dependent care tax credit taken on your income tax return. You will also see your tax savings in each paycheck, instead of once a year when you file your tax return.

Using the examples under each option, which were based on a $28% tax bracket, this participant saved over $2,000.00 in taxes.

So give yourself a raise, review your expenses and attend your enrollment meetings so that you can have more cash in your pocket.

For more details regarding the design of your employers plan, please refer to your "Summary Plan Description" provided by your employer or contact us at 601-856-9933. A plan specialist will be more than happy to answer your questions.

REQUEST FOR REIMBURSEMENT FORMS

In order to expedite your claims, please refer to the back of your Request for Reimbursement Form for claim procedures and required documentation. Many times, claims are delayed due to improper third party receipts. If the forms you are currently using do not have this information, please go to forms on this web site and print one.

We will be closed September 3, 2001 in observance of Labor Day.