Flexible Spending Account Services

Transcription

1 Flexible Spending Account Services Ceridian is the nation s largest independent administrator of comprehensive Flexible Spending Account (FSA) plans. FSA plans are a win-win situation for employers and employees alike they offer tax savings to employers and allow employees to set aside tax-free dollars to be reimbursed for out-of-pocket health care expenses. Typical savings are more than 10% of payroll taxes for employers and more than 30% for employees on out-of-pocket health or dependent care expenses. You can calculate your savings by pressing on this link: Ceridian s solution: With Ceridian s FSA Services, you will not owe payroll taxes on FSA contributions, and your tax savings will usually pay for the entire cost of FSA administration. Ceridian offers these services: Health Care Flexible Spending Account - Employees use pre-tax dollars to be reimbursed for insurance deductibles, co-payments, glasses and contact lenses, orthodontia and hundreds of other health care related expenses not covered by their insurance plans. Dependent Care Flexible Spending Account - Employees use pretax dollars to be reimbursed for day care expenses of their children or dependent adults. Pre-Tax Premium Plan - Employees pay their share of companysponsored insurance plan premiums with pre-tax dollars. This document contains proprietary information that is a trade secret of Ceridian Corporation and also is protected as an unpublished work under applicable copyright laws. The recipient is to retain this document and information in confidence and is not permitted to use or make copies thereof other than as permitted in a written agreement with Ceridian.

2 A Successful Implementation Follow these 3 easy steps to a successful FSA Implementation and Increased FSA Participation Plan Ahead: For best results, return signed application to Ceridian 60 days prior to desired effective date. Within 5 business days, Ceridian will contact the plan administrator to setup the Plan Design and Implementation meeting. Five days after the Plan meeting, Ceridian will send out plan materials, documents and the Participation Plus program via . Plan for a two week long Open Enrollment period to gain maximum benefits. Work With Your Ceridian Account Executive We will assign you a designated Account Manager who will learn your needs and corporate culture and be responsible for the day-to-day activity of your account. Your benefits staff can contact this person with any questions or concerns. Communicate, Communicate, Communicate: Follow Participation Plus program. Immediately display Enrollment Flyer Bulletin. Send the Employee Alerts according to the program instructions, and repeat as needed. Open Enrollment begins - send electronic Enrollment Kits to employees. There is some benefit to sending these materials several days prior to the start of open enrollment so that the employee s time for reviewing materials doesn t overlap with their open enrollment time. We suggest a two-week enrollment period to account for time spent reviewing materials and to maximize participation. NOT ENROLLED Alert send this alert to those who have not yet enrolled. You may want to send daily the last week of Open Enrollment. Make it Happen Complete the Savings! Sign the Service Agreement, Funding Agreement and Plan Specifications and forward them to your Ceridian Implementation Analyst 30 days before the effective date of your Ceridian FSA. Transmit employee election data to Ceridian 10 days before the effective date of your Ceridian FSA. Allow enough time for your Payroll Department/provider to setup employee deductions in the system. Effective date, plan administration begins!

3 Flexible Spending Account Services Profile Benefits to Employers Ceridian gets your plan off to a successful start with a coordinated implementation and enrollment plan to promote employee awareness, understanding and participation. Unique plan design Each employer has unique plan design needs based on their industry and the demographics of their employees. During the plan design stage, our experienced flex professionals will work with you to design a plan to meet your needs. Questions about potential discriminatory problems, limiting risk and coordinating with other benefits issues (such as increased employee contributions) are addressed before you implement the plan to ensure your flexible benefit plan matches your company objectives. Ceridian representatives will work with you to finalize all aspects of your plan and capture the information on our Plan Specifications form from Health Care and Dependent Care minimums and maximums to any credit allocation and funding details. Employee communication materials increase participation Ceridian s Participation Plus employee communication program has been developed and refined to achieve a high degree of employee understanding and participation in the Flexible Spending Account. We provide you a simple communications schedule to follow, and provide you with a series of communications materials in electronic format that you can distribute to your employees either via , on your Intranet site, or through printed copies you can generate on demand. Materials include suggested cover letter copy, a bulletin for posting around your company, a series of Employee Alert messages, a full set of FSA informational/enrollment materials, and an available introductory video. We will also work with you personally to guide you along the process to maximum participation. If you choose, after participants enroll in the FSA, we will send them a Confirmation Statement mailed directly to their homes. The Statement includes: Confirmation Letter summarizing the participant s election for the upcoming plan year. This letter gives participants the opportunity to correct errors in their elections before the plan year effective date. Claim filing instructions, including a claim form, and information about contacting us via our toll-free customer service line.

4 Fast and efficient enrollment processing We have created processes that allow FSA enrollment to be smooth and effortless. Electronic Data Transfer is a popular method of processing employee elections, allowing quick processing and a high level of accuracy. Even better is our self-service Enroll by Web system, which can virtually eliminate your involvement in the mechanics of the enrollment process. Participants can view or change their elections as many times as they wish during the open enrollment period, and can print out a Confirmation of Benefits on the spot. Personalized confirmation statements If you elect this optional service, Ceridian sends a Confirmation Statement to the home of each participant, once we have entered all your employees information. The statement summarizes the participant s elections for the year and gives the participant an opportunity to make changes before the plan year starts. (It is imperative that participants have the opportunity to change their elections before the effective date, since elections are binding the entire plan year unless the participant has an eligible status change.) Concise enrollment reports Enrollment results and subsequent payroll modifications are compiled in a concise summary report for use by your human resources department. Our detailed reporting and tracking is designed to simplify management of your Flexible Spending Account plan. Employer management reports itemize the selections and payroll deduction dollar amounts for each individual participant. (Sample reports will be provided upon request.) Personalized employer assistance You can receive technical assistance through our toll-free number during implementation and throughout the plan year. Account Managers (AMs), well versed in Section 125, will be dedicated to your account. They will be familiar with your plan design and the unique characteristics of your company and your employees. Account Managers are a key part of your Ceridian team they will help you maintain your plan throughout your plan year(s).

5 Accurate management of information Accurate management of employee account information is vital to the ongoing success of your flexible benefit plan. Services supported by our administrative system include: Establishing and editing individual election records Tracking of employee deposits and claim payments Adding new employees and changing or terminating employee participation during the year, as allowed by your plan Seamless FSA reimbursement process Ceridian handles funding of FSA reimbursements through the Automated Clearing House (ACH) transfer method. Using this process, you set up a bank account for FSA funds and give Ceridian authority to make debit transactions from that account. You may use an existing company bank account for this purpose, but most employers prefer to set up a separate zero-balance bank account. Each scheduled reimbursement date, we mail reimbursement checks to your employees (and initiate direct deposits, if applicable). You will receive a Client Payment Summary Report via fax to inform you of the total amount sent out in reimbursements for that reimbursement date. Ceridian will initiate an ACH transfer of funds from your account to our account typically two days after this notification (the exact timing depends on the day of the week on which your scheduled reimbursement falls). We Will Keep You Up to Date Ceridian will keep you up to date with information regarding our FSA services as well as the ever-changing regulatory environment surrounding FSAs and flexible benefit administrative issues. We will communicate the information you need to know as it becomes available. Model plan documents guide you Establishing your flexible benefit plan becomes a simple process with our guidance. We provide you model plan documents, which are professionally prepared and customized by Ceridian to fit the specifics of your plan design. Our model plan documents meet the requirements of IRC Sections 125, 105 and 129.

6 Nondiscrimination testing required The tax savings that result from a flexible benefit plan are available only if the benefits are provided in a nondiscriminatory manner. A plan may be disqualified by the IRS if it favors key or highly compensated employees. Our nondiscrimination testing process begins as soon as all employee elections are entered into our system. You ll receive: Cafeteria Plan Nondiscrimination Testing Data Questionnaire Testing guidelines Participant list with election amounts IRC Section 125, 105 and 129 nondiscrimination testing will be performed by Ceridian based on the plan information and enrollment data you include on the questionnaire. We will conduct the testing for you as soon as you complete and return the questionnaire to us. We then notify you of the testing results with recommendations on how to correct compliance problems, if any. Nondiscrimination tests should be performed whenever key employees are hired or several regular employees leave and Ceridian can perform nondiscrimination testing for you throughout the year if requested. FSA Manual serves as your compass Each client receives an FSA Client Administration Manual that provides explanations to the plan administrator regarding the Internal Revenue Code and applicable regulations and Ceridian s procedures. All information regarding the implementation of your FSA plan can be found in the Administration Manual. Sections of the manual include: Summary of Legal Requirements Nondiscrimination Requirements FSA Administrative Procedures FSA Claims Procedures Payroll & Reporting Requirements Ordering Supplies Service Fee Billing

7 ParticipationPlus Ceridian Services Offered through LISI Program for Employers Our ParticipationPlus program makes starting and maintaining an FSA program easier and more effective than ever. You receive complete instructions and comprehensive communications materials in the form of electronic documents so you can forward them electronically to your employees, or print on-site as needed. These materials were written for maximum impact. They explain the benefits of FSA clearly, and make it easy for employees to sign up and benefit! Employee Alerts a series of messages sent to employees prior to enrollment highlighting key FSA benefits. FSA Bulletin for posting at common locations and bulletin boards throughout your facilities. ParticipationPlus Employer Instructions a checklist of steps to follow that help you effectively communicate the FSA opportunity to your employees.

8 Benefits to Employees Ceridian s comprehensive administration services coupled with our accurate, fast claim processing, expert technical support and professional customer service help your employees get the most out of your FSA plan. Enrollment materials provided Ceridian s Participation Plus program ensures that your employees become fully aware of the FSA opportunity. When the program is followed, your employees will learn about your FSA plan through: bulletin board posters a series of alerts calling attention to various benefits of the plan a full set of enrollment materials that provide a detailed explanation of the available FSA plan(s) a list of eligible and ineligible expenses details specific to your plan easy-to-follow enrollment instructions direct deposit forms claim forms and claim filing instructions a toll-free help line they can call for further information After participants enroll, a Confirmation Statement is mailed to their home. The statements include: A summary of the participant s election for the upcoming plan year. This statement gives participants the opportunity to correct any mistakes in their elections before the plan year effective date. Claim filing instructions, including a claim form, and information about contacting us via our toll-free customer service line. During the plan year, participants will receive: Reimbursement Statements When participants send in a claim, we send them a statement that includes the reimbursement check (voided for Direct Deposit participants), an Explanation of Benefits (EOB), an account balance summary and a new claim form. A claim form is also included with the Confirmation Statement, for the participant to use for their first claim. Account Activity Statements These statements are mailed quarterly to participants and upon termination. They show account activity for the quarter and the amount available for reimbursement. It also reminds participants to use all the money in their accounts or it will be forfeited.

9 Participants can check account status around the clock Participants are much more comfortable with their FSA plan when they know they can manage it closely and control their use of FSA funds. We make this type of control easy and convenient. FSA Web site Ceridian helps participants manage the money in their accounts to the penny by offering 24-hour access to account information via the Internet. Current claim status can be viewed, as well as which payments have been made and when they were paid. Participants can track how much money they have left in their accounts and can print out claim forms on the spot. Interactive Voice Response (IVR) Services Participants can call our toll-free automated phone system (FLEXline) 24 hours a day, seven days a week to check on the status of their FSA account(s). They can find out their account balance, year-to-date contributions and withdrawals, claims pending and the date and amount of the most recent reimbursement check. Participants can also have a Claim Form faxed to them via the automated phone line. Fast claims processing FlexServ participants fax in their claims via an 800 toll-free fax line. Claims received via fax will be processed the latter of two business days after receipt of the claim; or prior to your next scheduled claim reimbursement date. Claims received via Mail may require one additional day for processing.) On-staff auditors verify claim and employee processing accuracy. After the plan year ends, participants have a grace period (usually 90 days), during which they can continue to submit claims incurred in the preceding plan year.

10 ParticipationPlus Ceridian Services Offered through LISI Program for Employees Our ParticipationPlus program gives your employees all the information they need to help them understand their FSA opportunity, and to motivate them to participate! You receive electronic documents to distribute to your employees in the most efficient way for you. The materials were written for maximum impact. They make it easy for your employees to learn about the savings available to them through the FSA and just as easy to sign up! Enrollment Materials Including lists of eligible expenses, enrollment forms, savings worksheets, claim forms and an FSA Highlights sheet summarizing your FSA plan details. FSA Overview Materials explain what an FSA is and how it works. Separate pieces discuss the Health Care and Dependent Care FSA opportunities.

11 Flexible Spending Account Services Ceridian s Flexible Spending Account Service offered through LISI provides: Participation Plus communications approach for maximum participation Toll-free customer service for participants Toll-free technical support for clients Direct deposit of claims reimbursement Participant claim status via Internet employees can manage their money to the penny Daily claims processing Plan document and Summary Plan Description customized for your plan Proven employee enrollment and communications materials Legislative and administrative newsletters for your staff Toll-free fax claim submission 24-hour toll-free automated information line for participants Nondiscrimination testing