FSA reminder email templates to share with your employees Many resources, like FSA Store, make it easy for employees to shop for qualified expenses. To be eligible for reimbursement, employees should make sure their purchase is listed as a qualified medical expense according to your FSA vendor. If they go this route, employees should keep itemized receipts with a date on them, to prove that their medical expenses were incurred within the given calendar year. If employees pay for qualifying medical expenses out-of-pocket, they have the option to submit an FSA reimbursement claim. Employees can use it just like they would their personal debit card-no need to submit a claim for reimbursement! Many vendors offer a debit card that can be used for qualified medical expenses. But generally speaking, there are a couple of ways your employees can use their FSA dollars: The rules vary depending on your company and the vendors you work with. But this year, those provisions have expired, meaning employees must claim their FSA dollars by March 15, 2023. In 20, the IRS relaxed the grace period for using up FSA dollars in response to the pandemic. This is big news for employees looking to take advantage of tax savings as a recession looms. Employees can now save up to $3,050 in an FSA, a 7% increase from 2022. What FSA regulation changes should you be aware of in 2023?Īs we head into a new year, the IRS has announced a few important changes that both you and your employees should be aware of. Generally, March 15 is the last day employees can use their FSA dollars or submit a claim for reimbursement. Many employers offer an FSA grace period-or a few extra months when employees can use up the FSA dollars they didn’t spend by the end of the calendar year. Most importantly, FSA dollars are use it or lose it: if employees don’t spend their full savings by the end of the year, it goes away.įSA spending, reimbursement and claims deadline While similar to a health savings account, FSAs have a few key differences that you’ll want to make sure employees know about. Employees can use an FSA to pay for insurance copayments and deductibles, qualified prescription drugs, insulin, medical devices and more. What is an FSA account?Ī flexible spending account (FSA) is a benefit many employers offer that allows employees to pay for medical expenses with tax-free dollars. Plus, we’re giving you a few handy FSA deadline reminder email templates to send to your employees. Here’s everything you need to share with your workforce, including some new IRS updates for 2023. And it’s up to YOU to make sure your employees, all of whom have 157 other things on their mind, get the memo before it’s too late to take action. Why?īecause it’s the last day to use last year’s flexible spending account dollars for eligible medical expenses. For many employees (including yours, most likely), March 15 is a day of reckoning. It’s that time of year…the FSA deadline is fast approaching. Originally published 2/1/21, updated on 2/16/23.
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