The middle of the plan year is a great time to take stock of the status of your plan. This applies to both employees who are participating in a plan such as a Flexible Spending Account (FSA) or Health Reimbursement Arrangement (HRA) and employers who sponsor employee benefits.
Employees may want to review the following items to avoid the end of plan year rush to claim remaining funds and submit necessary documentation:
- Confirm the correct amount is being deducted from your paycheck for the correct benefit
- Check your account online or through the mobile app – do you need to submit any receipts for outstanding claims? If your plan offers a debit card, there could be adverse consequences if receipt requests are ignored.
- Check your available balance – be aware of what you have left in your account so you can plan to use the funds before the end of the plan year and avoid any forfeitures. Funds that are left in the account after the applicable claim filing deadline may be forfeit.
Employers can also do a mid-year check to make sure nothing has fallen through the cracks that will make the end of plan year reconciliation a hassle. Here are some things for an employer to keep in mind as they are reviewing their plan:
- Confirm payroll deductions are accurate – whether you send a file or let the deductions post automatically in the system, review reports provided on your employer online portal to balance your records.
- Review enrolled employees – are employees still active in the system who should be terminated, or are new hires missing from the system? Communicate any necessary changes to your Account Representative.
Taking the time before the rush of open enrollment to make sure your plan is in order can save time in the long run and allow you to focus on the new plan year once it arrives.
BusinessPlans, Inc. – myCafeteriaPlan does not intend to provide legal or tax advice and information contained in this article should not be interpreted as such. Regulations governing pretax plans are often open to interpretation and should be reviewed with your legal or tax advisor before making any decisions regarding your plan.