Flexible Spending Accounts

Flexible spending accounts (FSAs) help you save money on health care and dependent care expenses. Parkland offers two FSAs, both administered by PayFlex.

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Health Care
Spending Account

Use for eligible medical, dental, vision and hearing expenses not paid by another health plan.

Dependent Care
Spending Account

Use for eligible dependent care expenses, such as child or adult day care, incurred while you and your spouse work. You may not use the Dependent Care Spending Account to reimburse yourself for health care expenses related to your dependents.

How the Accounts Work

Decide how much to contribute.

  • With the Health Care Spending Account, you can contribute up to $2,750 per year.
  • With the Dependent Care Spending Account, you can contribute up to $4,000 per year ($2,000 if you are married but file separate tax returns). See Dependent Care Subsidy below.

Pay for eligible expenses.

  • With the Health Care Spending Account, you can use your debit card to pay for care. You can also pay the expense and then file a claim for reimbursement. On the first day you start participating in this account, you have access to the full contribution amount that you elected. Parkland will deduct your biweekly contributions from your paycheck throughout the year.
  • With the Dependent Care Spending Account, you pay the expense upfront and then file a claim for reimbursement. You must have the money in your account before you can receive reimbursement.

File a claim if needed.

Visit payflex.com and complete a form. You can choose to be reimbursed by check or direct deposit. You’ll need to attach any required documentation. You may also find a form in the Legal Notices section.

  • For the Health Care Spending Account, attach copies of itemized bills or an Explanation of Benefits (EOB).
  • For the Dependent Care Spending Account, you must include the provider’s Social Security number or tax identification number.
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Dependent Care Subsidy

Parkland offers a special incentive to encourage you to contribute to the Dependent Care Spending Account.

Parkland’s contribution is equal to 25% of the amount that you contribute (up to $1,000 per year). The total maximum contribution per year is $5,000 ($4,000 from you and $1,000 from Parkland contribution).

For example, if you contribute $2,800, Parkland would contribute $700 (25% of $2,800) for a total contribution of $3,500.

Double Tax Savings

Pre-tax savings

Your contributions come out of your paycheck before your taxes are taken out, which means you pay less in taxes.

Tax-free withdrawals

When you use the money for eligible expenses, you pay no taxes.

FSAs at a Glance

Here are the need-to-know details about the spending accounts. Visit the IRS site for a complete list of covered health care expenses and dependent care expenses.

Health Care Spending AccountDependent Care Spending Account
Who can use itAll Parkland employeesParkland employees who have dependent care expenses so you (and your spouse, if married) can work, look for work or attend school full time
How much you can addUp to $2,750 per yearUp to $5,000 per year ($2,500 if you are married but file separate tax returns)1
Whose expenses are eligibleYours, your spouse’s and your eligible dependents’
  • Your children under age 13 who qualify as dependents on your federal tax return
  • A spouse or unmarried child of any age who is physically or mentally incapable of self-support
  • Other family members who are physically or mentally incapable of self-support, who live with you for more than half the year and who qualify as dependents on your federal tax return
What you can use it forEligible health care expenses, such as:
  • Copays, deductibles and coinsurance
  • Dental expenses such as orthodontia, crowns and bridges
  • Vision expenses such as LASIK eye surgery, glasses and contacts
  • Prescription drugs
  • Certain over-the-counter medications to treat an illness or injury, such as pain relievers, antacids, allergy and sinus medicine, pain relievers and cold medicine
  • Weight loss programs prescribed by your doctor to treat a specific medical condition
  • Stop smoking programs prescribed by your doctor to improve your health
Eligible dependent care expenses, such as:
  • Nursery school, day care center, day camp and babysitting
  • Before-school or after-school care for children under age 13
  • Back-up care for children under age 13
  • Nurse or caregiver for an elderly relative who qualifies as a dependent

Note:
Care provider must be age 19 or older and not claimed as a dependent on your federal tax return.



1 With the Parkland special incentive, the maximum that you can deduct from your pay is $4,000. Parkland will contribute up to the remaining $1,000 (25%). See Dependent Care Subsidy above.

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Know the Rules

Estimate carefully. Your annual election will cover the time period from January 1, 2022, through March 15, 2023. If you are a new hire, your election will start 90 days after your date of hire. You can’t change your election during the year or stop participating unless you have a qualified status change.

Use it or lose it! You will lose any FSA money you don’t use by March 15, 2023. You have until March 31, 2023, to request reimbursement and file claims for 2022 expenses. You will forfeit any remaining amount. For your 2021 accounts, you will lose any FSA money that you don’t use by March 15, 2022. You have until March 31, 2022, to request reimbursement and file claims for 2021 expenses.

The accounts are separate. You can’t transfer money between the accounts or use the Dependent Care Spending Account to pay for health expenses for your dependents or vice versa.

Keep your receipts. Make sure you keep your receipts in case you need to verify your purchase.

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Frequently Asked Questions (FAQs)

How much money can I expect to save on taxes with an FSA?

Generally, federal taxes range from 15% to 28%, and Social Security taxes are currently 7.65% of your pay. So you could save about 30 cents on every dollar you spend on eligible expenses.

Can I use the Health Care Spending Account for my domestic partner’s health care expenses?

No. According to current IRS regulations, your domestic partner’s expenses can’t be reimbursed through your Health Care Spending Account. By federal law, you must be legally married to pay for your spouse’s eligible health care expenses with your Health Care Spending Account.

How do I decide how much to contribute to the Health Care Spending Account?

First, review your family’s health care bills for the last few years. Then, consider whether you have any big planned expenses for 2022, such as surgery or having a baby. Include only out-of-pocket expenses that aren’t paid by health care coverage. Estimate carefully, as you’ll lose whatever you don’t use by March 15, 2023. Visit payflex.com to use an interactive budget worksheet

Tax Deductions vs. FSA

Health care expenses

Only health care expenses that exceed 7.5% of your adjusted gross income can be deducted from your income taxes, according to the IRS.

Dependent care expenses

For dependent care expenses, take a look at the tax credit vs. the spending account. The tax credit is determined by applying a percentage to your total dependent care expenses. Based on current tax structure, generally the tax credit is more beneficial than a dependent care spending account if your family income is under $24,000.

Manage Your Spending Account

Visit payflex.com or call 800‑284‑4885. On the website, you can:

  • View your account balances.
  • Upload claim forms and other documents such as receipts.
  • Manage your FSA debit card.
  • Find out if an expense is eligible.