Due to COVID-19 there have been recent changes to Flexible Spending Account rules. Visit this announcement for additional information.

Benefits-eligible employees can contribute to Flexible Spending Accounts (FSA) and use pre-tax payroll dollars to pay for eligible health care, dependent care, and/or parking expenses that they would otherwise pay for with their after-tax income. Using pre-tax dollars for expenses reduces your overall federal, state, and Social Security tax liability and saves you money. Your taxable salary is reduced by the amount of your Flexible Spending Account contribution.

The Broad provides the following Flexible Spending Accounts:

Health Care Flexible Spending Account: provides reimbursement for certain health and dental expenses that are not covered by medical or dental insurance.

Dependent Care Flexible Spending Account: provides reimbursement for certain dependent care expenses incurred while you are at work. Broad contributes up to the first $2,000 of your Dependent Care FSA expenses when you elect to participate. For specific details read more here.

Parking Reimbursement Account (known as Parking in the Commuter section of the Wage Works website): to reimburse you for certain parking expenses to commute to and from work. (Please note: the reimbursement for parking is different from the transportation subsidy offered as a benefit by the Broad. Regular institute parking, carpool parking, visitor parking, and vanpool parking are already subsidized and taken pre-tax from your pay; the expenses incurred by participating in any of these plans are not eligible for reimbursement under a Parking Reimbursement Account).

 

Flexible Spending Accounts

2021 Minimum and Maximum Contributions

Account Type Annual Contribution Limits
Health Care Minimum: $120.00
Maximum: $2,750.00
Dependent Care Minimum: $120.00
Maximum: $5,000.00 (per household)* 
Commuter Parking Maximum: $270.00
*The Dependent Care FSA maximum is $5,000 a year for individuals or married couples filing jointly, or $2,500 for a married person filing separately. Married couples have a combined $5,000 limit, even if each has access to a separate dependent care FSA through their employer.

 

How the Program Works

When you enroll in a Flexible Spending Account, the annual amount you elect to contribute in Workday will be divided by the number of paychecks left in the year. That amount will be automatically deducted pre-tax from your paycheck and depostied into your Flexible Spending Account in WageWorks. Submit your claims to WageWorks for reimbursement.

If you enroll in a Dependent Care FSA, the Broad contribution will be deposited in your FSA on your behalf after each payroll cycle.

The tax advantages of FSAs vary depending on an employee's taxable salary, tax filing status and the amount of your FSA contribution.

Estimate your FSA expenses carefully. Health Care and Dependent Care FSAs run on a calendar year. The IRS requires that any money remaining in your FSA at the end of the year cannot be returned to you. This is called the "use it or lose it" rule.

Please note, due to IRS regulations, you cannot be enrolled in a General Purpose Health Care FSA and Health Savings Account (HSA) at the same time. If you enroll in a High Deductible Health Plan (HDHP) with a Health Savings Account (HSA) mid-year, you will need to spend down your entire Health Care FSA balance before your HSA effective date.

 

How to Enroll in this Benefit

Employees may enroll in a Flexible Spending Account through Workday during the annual open enrollment period which takes place every fall. Only new hires, and employees who experience a Qualifying Life Event, may enroll in a FSA or make mid-year changes to their benefit elections. It's important to note that while other benefit elections automatically carry over from year-to-year, you must actively re-enroll in Flexible Spending Accounts during open enrollment every year in order to keep contributing.

You may change your Dependent Care FSA election if there's a change in your child-care provider. For example, if your provider is no longer providing the care (i.e., summer day camp cancels/closes, or if care is no longer needed) your contributions may be reduced or eliminated. You have 30 days from the date you received notice of a change in costs for dependent care to update your FSA election in Workday by entering a Change Benefits Event.

 

WageWorks Healthcare Card

After enrolling in a Healthcare FSA in Workday, you will receive a WageWorks Healthcare card in the mail. The WageWorks Healthcare card is a quick and easy way to pay for eligible Healthcare FSA expenses. Just be sure to save your receipts any time you use your card in case you need to verify a charge. An easy way to save your receipts is to upload them to the WageWorks EZ Receipts Mobile App.

 

How to Set up Your Account with WageWorks

After electing your FSA in Workday, your account will be created in WageWorks in about a week. If you have never logged into the WageWorks website, you will need to register as a new user. Your WageWorks ID code is the last 4 digits of your employee ID number, which can be found by logging into Workday, clicking on the cloud icon in the top right corner, and selecting "View Profile".

 

How to Submit a Claim and Get Reimbursed

If you have an FSA for Health Care, Dependent Care, or Parking, consider going mobile! You can check your balance, monitor spending, file a claim, or submit a receipt via the WageWorks site or mobile app.

You can also complete the appropriate FSA claim form and send in your original receipts by mail:

Health Care FSA claim form

Dependent Care FSA claim form

Parking Reimbursement Account claim form

Always save your receipts for any FSA expenses. Regardless of whether you receive a request for a receipt, the IRS requires you to retain receipts for your tax records.

The gace period and claim submission deadlines for Health Care and Dependent Care Flexible Spending Accounts are as follows:

Grace Periods
For the 2020 plan year, claims can be incurred through March 15, 2021. Expenses incurred from Jan. 1, 2020 through March 15, 2021 will be charged against the 2020 account (if there is a balance) and then charged against the 2021 account (if applicable).

For the 2021 plan year, claims can be incurred through March 15, 2022. Expenses incurred from Jan. 1, 2021 through March 15, 2022 will be charged against the 2021 account (if there is a balance) and then charged against the 2022 account (if applicable).

Claim Submission Deadlines
All paper and online claim submissions for 2020 plan year expenses (incurred Jan. 1, 2020 through March 15, 2021) must be received or postmarked by March 31, 2021 to be considered.

All paper and online claim submissions for 2021 plan year expenses (incurred Jan. 1, 2021 through March 15, 2022) must be received or postmarked by March 31, 2022 to be considered.