Simple HR Flexible Spending Account
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The Flexible Spending Account (FSA) is an outstanding benefit that allows a participant to set aside pre-tax money for out-of-pocket costs associated with medical, dental, optical, over-the-counter medications, and other covered expenses. Keep in mind that any payroll deductions that can be pre-taxed will actually reduce your overall taxable wages during the year.
The maximum amount you can elect for the plan year is currently $1,500. You can elect any amount up to the annual maximum and you should take the time to determine what you think you out-of-pocket covered expenses would be for the calendar year in which you use the plan. You can also elect up to $5,000 for Child Care expenses if you elect that option under the FSA.
The FSA is a “use-or-lose” benefit. As defined by the IRS, it means that should you elect (for example) to participate for $1,000 and you only use $800 during the year in expenses, you would lose $200. However, in most cases you will know your balance by the month of December and with the new guidelines now in place for over-the-counter purchases, you should have no problem using the remainder of your account balance for out-of-pocket expenses.
Another benefit of the FSA is that once you enroll in the plan, your elected benefit amount is immediately available for use, up to your maximum elected amount. Again, as an example, if you elect $1,000 for your annual amount and you have to spend $1,000 out-of-pocket for a surgical procedure, then you can immediately submit your claim for the full covered reimbursement – even if you haven’t paid in enough to cover the reimbursement. You will have a negative balance at that point which will eventually be paid in full at the end of the year. However, should you terminate your employment prior to repaying any negative balance in your account; you will be asked to repay any negative balance. This could include receiving a zero final check.
The Child Care benefit under the FSA is a little different. You will normally pay into the FSA at least two to three weeks ahead of your claims that you would submit when paying for weekly childcare. You can never draw more from the Child Care benefit plan than what you have paid in. Also keep in mind that you cannot normally use BOTH the Child Care benefit under the FSA and claim the Child Care Credit on your federal income taxes.
If you terminate and you actually have a balance in your FSA account, you can still submit claims for the paid-in balance (not the annual election amount) up through December 31st with an additional 90-day extension into the next year to file your claims.
All claims and deferrals are handled through Eflexgroup, our administrator for the Flexible Spending Account. You will need to complete an enrollment application to start your FSA deductions.
Please contact the Simple HR Benefits Department for further information.
Termination of Flexible Spending Accounts
If you are terminated or quit employment with Simple HR, there are specific procedures that will apply regarding the Flexible Spending Account (FSA).
If you have a negative balance in the FSA because you have already submitted claims up to your annual maximum but you have not paid in enough during the year; this balance will need to be repaid at time of termination. Typically we will try to have any negative balance repaid on the final check and, if necessary, issue a zero check. However, if a balance is still due you will receive a letter from Simple HR asking for repayment of any outstanding balance.
If you have a positive balance in the FSA at the time of termination, you will have a couple of options available and we will use the following case as an example:
For purposes of this example let’s say that you terminate your employment in July and you have NOT used any of your FSA year-to-date. You elected $1,000 in the FSA for the year and to date you have paid in $500. You have NOT had any claims so far. Your options are-
1. You can elect to remain as an active participant in the FSA, even as a terminated employee by participating in COBRA. You will still need to send in payments to Simple HR and they will not be pre-taxed. The advantage is that you can still have access to your annual election of $1,000 for the rest of the year.
2. The most common option is to file your claims through the end of the calendar year for the balance that you have in the FSA up to the time you were terminated. You cannot file for the entire election amount when you enrolled in the program. You still remain as an active participant only for the submission of your reimbursements.
3. With both options listed above, you still are subject to the “use or lose” rule.
Please contact the Simple HR Benefits Department for further information. You can also read more about the plans at:
www.eflexgroup.com
Large Group Term Life Insurance
Plan Details
Available to All full-time Employee's with 25 hours or more per work week
This is a valuable plan designed to provide a $15,000 benefit to your survivors in the event of your death. This plan also provides a $15,000 benefit if you die as a result of an accident (within 90 days) or if you suffer one of the losses below:
Life
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100% |
Both Hands, Both Feet or Both Eyes
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100% |
One Hand and One Foot
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100% |
One foot and Sight in One Eye
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100% |
Speech and Hearing in Both Ears
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100% |
One Hand or One Foot
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50% |
Sight of One Eye
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50% |
Speech or Hearing on Both Ears
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50% |
Hearing in One Ear
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25% |
| Thumb and Index Finger of Same Hand |
25% |
TO ENROLL: Complete the Basic Term Life Insurance Enrollment Form. Your Life Insurance is NOT in effect unless you complete the Enrollment Form. You also do not have additional life (buy up for additional coverage), unless you complete the Enrollment Form and Heath Questionnaire for Additional Term Life. You may fax the Employee Benefit Request Form to Simple HR at 1-850-650-9936, however you MUST mail in any Life Insurance Enrollment Forms. All applications for additional coverage must pass through Underwriting prior to approval.
Rates
These Rates are for the Option to BUY UP additional Term Life Insurance. You must have the basic Term Life offered by the Client before you can buy up any additional Term Life.
BASIC: $15,000
VOLUNTARY: An employee may choose an amount, in increments of $10,000. This amount may be from a minimum of $20,000 to a maximum of $150,000. The amount chosen mat not exceed 5 times basic annual earnings. You can use the table below to figure out your cost for additional coverage amounts.
Examples:
- You are under the age 30 and want an additional $10,000 of coverage (bringing your total coverage to $25,00) the cost would only be $0.70 per month.
- If you are 35 years old and want and additional $30,000 of coverage (bringing you total coverage to $45,000) the cost would be $3.30 per month
Current Rates are available by contacting the Simple HR Benefits Administrator, Sally LaPierre, at 1-850-650-9935, extension 37.
| Simple HR 401(k) Program |
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| Enrollment |
If the 401(k) is available as a benefit to you, the typical waiting period is 90-days however it may vary depending on the Client election. Some Client locations will require that you be with them at least 6 months to 1 year before you are eligible to participate.
Once you are eligible to enroll, you should receive a Slavic 401(k) packet either directly from Simple HR or Slavic Investment Group. There is a link to their website elsewhere on our Benefits Website. After receiving your packet, you should carefully review the information and complete the application for enrollment. You have the option to determine a percentage of your wages you wish to contribute to your 401(k) which is commonly referred to as a deferral. You can also designate a specific dollar amount if you wish.
Once you complete the application, fax it to Simple HR or to Slavic 401(k). Your deferrals will begin on the first day of the next quarterly open enrollment. For example, if you complete the paperwork in August, your deferrals will not begin until October, which will be the start of the 4th quarter open enrollment for the 401(k).
Most everyone has questions about how to invest in a 401(k). Based on recent changes in the federal law regarding how 401(k) third party administrators may advise participants, Slavic Investment Group can now speak to each of our participants about their investment options. The Simple HR 401(k) portfolio has plenty of options for participants to consider including three pre-allocated investment options – aggressive, moderate, and conservative.
Additional Information
The Simple HR 401(k) also offers the following:
- Loans against your 401(k) – up to 50% of your vested amount (certain cases for hardship loans may apply)
- Email weekly updates of your 401(k) balance
- On-line access to monitor your 401(k) – you can make balance transfers from one fund to another (or multiple funds)
- You can stop your deferrals at any time but you may not enroll again until the next quarterly enrollment period
- Quarterly statements are mailed out to each participant
- You can change your deferral amount or percentage at the beginning of any quarterly enrollment period
There is an annual administrative fee that every participant pays while enrolled in the Simple HR 401(k) which is $39. This is normally collected quarterly and while it is transparent to the participant it covers all of the services offered above (except for a loan origination fee and annual maintenance fee).
For more information on the Simple HR 401(k) please visit our partner:
www.slavic401k.com
Employee Assistance Program
With over 20 years experience, BHS is committed to providing expert Employee Assistance Program services to function not only as a resource for employees, but also as an invaluable supervisory and organizational tool. With a dedication to EAP core technology and superior customer service, BHS helps generate tangible improvements in human capital, organizational and health care costs.
The Employee’s Advantage
- Early identification and resolution of problems.
- Easy access to a company dedicated Care Coordinator, 24 hours a day, seven days a week, and to behavioral healthcare providers nationwide within three days of contacting BHS for assistance.
- Participation by the employee in the development of a plan of treatment, choice of provider, access and service without barriers and hassles.
- Personalized treatment including a face-to-face evaluation and counseling.
- Referrals to community resources and support groups to meet the specific needs of the employee.
The Employer’s Advantage
- Significant cost savings.
- Reduction in medical claims costs.
- Increased productivity and reduced absenteeism with fewer accidents and enhanced morale.
- Demonstration of employer’s genuine concern for employee health and quality of life.
- Critical incident response.
- Employee satisfaction (in excess of 98%).
The Supervisor’s Advantage
- Formal processes for referral and employee evaluation
- Conflict resolution assistance
- Substance Abuse awareness training
- Return to work assessments
- Fitness for duty evaluations
- Diversity and Sensitivity
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