epcounty.com - County Auditor

County Auditor

125 "Cafeteria Plan/Flex" Summary
What is a "Flex Plan"?
It is a voluntary flexible employee benefit plan that allows you to pay for the following expenses before taxes:
- Medical Insurance Premiums
- Costs not covered by medical insurance (unreimbursed medical expenses)
- Dependent Day Care
How does this plan work?
The plan reduces your taxable income by the cost of the benefits you choose. Thus, both social security and federal withholding taxes will be reduced, producing a net increase in take home pay.
What is the Unreimbursed Medical Expense account?
This benefit allows for the pre-tax reimbursement of medical expenses that insurance does not pay. This account should be used by employees who have predictable expenses.
How does the Unreimbursed Medical Expense account work?
Each time you have a medical expense, simply submit the claim to your insurance company as usual. When the insurance company processes the claim, an Explanation of Benefits will be returned to you. Send to Butterworth & Macias a copy of the Explanation of Benefits and proof of payments for the portion the insurance carrier did not pay. Butterworth & Macias will process the receipts and send you a reimbursement check. Complete the Medical Reimbursement Form for a reimbursement request.
How does the Dependent Care Reimbursement Account work?
When you pay a dependent care expense, obtain a receipt with the dates of services, cost of services, the name of the dependent, and the provider of services. Send a copy of this receipt to Butterworth & Macias, we will process the receipts and send you a check. Complete the Dependent Care Reimbursement Form for a reimbursement request.
How do I enroll?
Simply complete a Cafeteria Plan Enrollment Form and return it to payroll.
Here are some other important points you need to know:
- Any money that you allocate for a reimbursement account must be used by the end of your plan year or that money will be forfeited back to your employer. That is the law! Thus, it is critical for you to accurately predict what your expenses will be, or be conservative in your allocations. Utilize the Flexible Spending Account (FSA) Worksheet Form to estimate your expenses.
- You may not change your choices until the plan year has ended unless there is a change in your family status (marriage, divorce, birth or adoption of a child, death of a spouse or child, beginning or ending of spouses employment). Complete the Family Status Change Form if you have any changes.

Example:	Without FSA 125	With FSA 125
Gross Income/Week	$750.00	$750.00
Less: Pre-Tax Benefits	$0.00	$65.00
Gross Taxable Wages	$750.00	$685.00

Less:
Federal Income Tax @ 28%	$210.00	$191.80
State Income Tax @ 5%	$37.80	$34.25
Social Security Tax @ 7.85%	$57.37	$52.40
Qualified Benefits: Medical/Dental Ins.	$65.00	$0.00
Net Check	$380.13	$406.55

*Gross Tax Savings/Weekly Check*		$26.42

Who do I contact if I need additional Information?
Butterworth & Macias
600 Sunland Park Drive, Bldg 2, Suite 300
El Paso, Texas 79912
Phone: (915) 584-6000 Extension 18/19
Fax: (915) 231-9369