Eastern Michigan University provides its staff and Faculty members the opportunity to participate in a Flexible Spending Account which will be administered by a new vendor, BASIC, starting in January 1, 2009. The FSA allows employees to pay for predictable dependent care expenses and medical expenses with pre-tax dollars. Employees are able to enroll during their first thirty (30) days of employment or during the annual open enrollment period held each year.

You must also decide how much money you like to contribute upon enrollment.  Once the amount is determined, it can be changed or stopped only if a change in family status occurs (i.e. marriage, divorce, birth or adoption, death of a dependent or employment loss of a spouse.)  The money deducted for the FSA is pre taxed, which means no FICA, federal or state tax is withheld.  The money contributed is not reported on W-2 as taxable income; therefore you pay less tax.  The maximum deduction for both dependent care and medical expenses is $5,000.00.  You pay your expenses and then submit your receipts directly to the FSA carrier.  It is imperative that you estimate your expenses accurately and plan your deductions accordingly since any money remaining in your account at the end of the plan year will be forfeited.

The plan includes a FSA Debit Card which allows you to pay for health care expenses. The card is linked to the Medical FSA.  The various links indicated below, provide the enrollment kit for the FSA, an explanation of the Debit Card and an explanation of how a FSA can save you money.