Flexible Spending Accounts – Parkland Benefits

Health Care
Flexible Spending Account

Use for eligible medical, dental, vision and hearing expenses not paid by another health plan. You can’t open a Health Care FSA if you enroll in the High Deductible Health Plan (HDHP) with Health Savings Account (HSA) or if your spouse has an HSA.

Dependent Care
Flexible 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 Flexible Spending Account to reimburse yourself for health care expenses related to your dependents.

Important! If You Enroll in the HDHP With HSA for 2024

IRS rules do not allow you to have both a Health Care Flexible Spending Account and a Health Savings Account (HSA).

If you currently have a Health Care Flexible Spending Account (FSA) and you elect the HDHP with HSA for 2024, you will need to use any remaining 2023 FSA funds by Dec. 31, 2023. Any 2023 balance not used by Dec. 31, 2023, will be forfeited.

You will have until March 31, 2024, to file 2023 claims incurred through Dec. 31, 2023.

How the Accounts Work

Decide how much to contribute.: With the Health Care Flexible Spending Account, you can contribute up to $3,200 per year.

With the Dependent Care Flexible 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 Flexible 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 Flexible 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 inspirafinancial.com (formerly 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 (Other Forms and Documents).

For the Health Care Flexible Spending Account, attach copies of itemized bills or an Explanation of Benefits (EOB).

For the Dependent Care Flexible Spending Account, you must include the provider’s Social Security number or tax identification number.

Using Your Debit Card

Your PayFlex-branded debit card will continue to work until the card expires. You will receive a new Inspira-branded debit card in the future.

Dependent Care Subsidy

Parkland offers a special incentive to encourage you to contribute to the Dependent Care Flexible 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).

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 FSAs. Visit the IRS site for a complete list of covered health care expenses and dependent care expenses.

	Health Care Flexible Spending Account	Dependent Care Flexible Spending Account
Who can use it	All Parkland employees who do not elect the HDHP with an HSA or whose spouse does not have an HSA	Parkland 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 add	Up to $3,200 per year	Up to $5,000 per year ($2,500 if you are married but file separate tax returns)¹
Whose expenses are eligible	Yours, 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 for	Eligible 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.

Woman Writing and Looking at a Calculator

Know the Rules

Estimate carefully. Your annual election will cover the time period from Jan. 1, 2024, through March 15, 2025. 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! For a 2024 Health Care FSA, you will lose any FSA money you don’t use by March 15, 2025. You have until March 31, 2025, to request reimbursement and file claims for 2024 expenses. You will forfeit any remaining amount. For your 2023 accounts, you will lose any FSA money that you don’t use by March 15, 2024 (Dec. 31, 2023, if you enroll in the HDHP with HSA for 2024). You have until March 31, 2024, to request reimbursement and file claims for 2023 expenses.

The accounts are separate. You can’t transfer money between the accounts or use the Dependent Care Flexible 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.

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.

How do I decide how much to contribute to the Health Care Flexible 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 2024, 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, 2025. Visit inspirafinancial.com to use an interactive budget worksheet.

May I enroll in the Health Care FSA if I elect the HDHP with HSA or if my spouse has an HSA for 2024?

No. If you enroll in the HDHP with HSA for 2024, the IRS will not allow you to enroll in Parkland’s Health Care FSA.

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 Flexible 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 Flexible Spending Account if your family income is under $24,000.

Manage Your Flexible Spending Account

Visit inspirafinancial.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.