They contribute pre-tax dollars in advance to an account in their name. You as the employer hold the employee's contributions until the money is requested by Midwest Group Benefits.
	Later, when they have eligible expenses, they can be reimbursed from their account. Employees may submit for reimbursement as often as they like. Claims are processed in our office weekly.  Click here to complete or print a Flexible Spending Claim Form.
	Employees may withdraw the total amount of their Medical Spending account election at any time during the plan year once they have incurred reimbursable expenses
	For the Dependent Care Account employees can only be reimbursed for amount that they have contributed to date.
	The general calculation for tax savings is to multiply the amount of money an employee will redirect by their tax rate. Here is an example:

Regular corporations, partnerships, S corporations, limited liability companies (LLCs), sole proprietors, professional corporations and not-for-profits can all save money on payroll taxes by establishing a Flexible Spending Account. While regulations prohibit a sole proprietor, partner, members of an LLC (in most cases), or individuals owning more than 2% of an S corporation from participating in the plan, they may still sponsor a plan and benefit from the savings on payroll taxes.

There are several 'rules' the IRS has implemented for Section 125 participants that you should be aware of:

Plan Year. Only expenses incurred during the plan year are reimbursable (though payment of these expenses can be carried over for a short time.)   Separate Accounts. Un-reimbursed medical expenses and dependent care expenses are treated as separate accounts. The IRS does not allow employees to transfer money between those accounts.   Family Status Changes. Once you make your decisions on how much you redirect into your spending accounts, this cannot change… except for changes in your family status which include: Marriage, divorce, death of a spouse or child, birth or adoption of a child, or change in your spouse’s employment status from full-time to part-time or vise versa.   Forfeiture of Unused Balance. If expenses you incur for the Plan Year are less than your contributions for that same Plan Year, you will forfeit the unused balance. With wise and conservative planning most participants do not forfeit any money.

	Eligible Health Reimbursement Expenses
	Estimate Your Dependent Care Expenses
	Flexible Spending Account Savings Calculator
	Flex Spending Claim Form
	Print HRA Claim Form
	Eligible Over the Counter Drugs
	Flex Change in Family Status & Employee Termination Form
	Direct Deposit Authorization