When a participant swipes their FSA debit card, it triggers a series of emails from SBA depending on the nature of the swipe. Here is why these emails are important and what a participant can expect to receive. Read the article.
I’m worried about the COVID-19 pandemic. Can I buy disposable face masks as an eligible expense through my HSA or FSA?
Yes, when purchased because there is a current respiratory epidemic or you have a family member who is sick with a communicable illness, a disposable mask is eligible for reimbursement from your HSA or FSA.
I am enrolled in my company’s Dependent Care Assistance Plan (DCAP). Can I lower or stop my participation in the plan because my children are at home due to schools being closed during the COVID-19 pandemic?
Yes, DCAPs do allow you to make changes to your contribution due to a change in cost or coverage. Therefore, you can stop your participation because your need for daycare has stopped. Notify your Human Resource Manager as soon as possible and complete a “Change of Status” form within 30 days of the end of your Daycare expenses. When your need for daycare returns, complete another “Change of Status” form within 30 days of your need for daycare returns. You can also change the amount of your pay period contribution so you end the plan year having contributed as much as you need or up to $5,000 as allowed by the IRS.
My doctor and dentist cancelled my appointments due to the COVID-19 outbreak. Can I lower my Health FSA election during this pandemic?
On May 12, 2020, the IRS issued guidelines allowing employers to amend their FSA plans to permit changes to annual elections or allow new elections. Refunds of previously contributed contributions are not permitted. Check with your employer to see if your plan to allows for mid-year changes to your healthcare FSA. If allowed, you will need to complete a change of status form.
Keep in mind that even if you had an elective procedure planned and/or a doctor’s appointment scheduled, we are hopeful that you will be able to use your full election prior to the end of the plan year. You might also consider other procedures/services/products that could utilize un-used funds. Remember, the CARES Act now allows for OTC medications to be eligible for reimbursement without a prescription – but be careful not to stockpile.
Please note that if you are an HSA participant, you can increase, decrease or cease your contribution at any time.
Can I view my debit card activity on the Mobile MyRSC app?
The Card Activity page gives you the option to view the transaction details or account details of your debit card.
Selecting View Transaction Detail takes you to the Transaction Overview page. Select the month and year for the card activity you want to view. Only the
transactions for the month and year you choose will be displayed. Clicking on a particular transaction lets you see the details of that card swipe.
Selecting View Account Detail lists all cardholders on your plan. You can then select the person’s name and see the account details associated with that card. You also have the option of blocking a card.
How can I find out my account information on the Mobile MyRSC app?
When you select the View Accounts option, the page displays only the benefits for which you are subscribed. Select the benefit you wish to view to see unresolved transactions, benefit summary data, and details of claims and reimbursements.
What information can I find on the Mobile MyRSC app?
Once you log in, you are on the Home page. This page lists all available options you have on the mobile site:
- View Accounts: view the balance and details of your Health Reimbursement Account (HRA), Health Savings Account (HSA), or Flex Spending Accounts (FSA). You may have one or or more of these accounts available to you, depending on your company’s benefit package
- Card Activity: view all card transactions and card details
- Personal Information: view or edit your personal information
- Manage Subscriptions: change the emails and notifications sent by myRSC
- Logout: logs you out of your account
- Home and Help: Home brings you back to this screen and Help provides contact information regarding your benefits
How do I log in to the Mobile MyRSC app?
Open the Mobile myRSC® app or point your browser to: https://mobile.myrsc.com.
The first page that loads is the login screen. Use the same username and password that you use to log in to the full myRSC website.
NOTE: The mobile site is optimized to work on Safari on an iOS, the default Android Browser, or Chrome on Android 4.x. If you are using an older browser, you will automatically be redirected to the classic myRSC site.
I am taking a three-month maternity leave and must pay for parking in order to hold my parking space. Can I be reimbursed from my transportation plan for parking during my leave?
Yes, you are still considered to be an employee during the maternity leave. If you need to pay for parking to hold your spot until you come back; you are eligible for parking reimbursement.
What paperwork will I need to submit to substantiate my claims if I use a Qualified Transportation benefit debit card?
Receipts for transit pass purchases, monthly parking statements or invoices, parking meter’s which provide window tickets, vanpool statements or invoices are all eligible documentation for reimbursement along with the required claim form. When no receipt was provided, a personal attestation/certification regarding the type or amount of expense incurred is required (language included on Transit claim form).
I have a debit card for my transportation plan. How does it work?
Check with your employer to see if they offer a debit card to pay for qualified parking or transit expenses. If yes, the card will work only at transit and parking locations where the card machines are programmed with parking or transit merchant codes. Be sure to swipe the card for no more than you have in your parking or transit account(s). If you swipe the card for more than the balance in your card, or for more than the monthly statutory limit, the whole transaction will fail.
I participate in a vanpool. How is my monthly vanpooling expense calculated for a transportation plan?
The fair market value of vanpooling expenses is based on all the facts and circumstances. Vanpooling benefits may be valued under the automobile lease valuation rule, the vehicle cents per mile rule or the commuting valuation rule. If one of these special valuation rules is used, however, the employer must use the same rule to value the use of the commuter highway vehicle by each employee who shares the use.
Is a Qualified Transportation Plan a COBRA-eligible plan?
No. If there are any unused funds in the account, they are forfeited at termination of employment.
Can I carry over amounts remaining in my transportation plan account to future months?
Yes, a plan may permit employees who remain employed by the employer to carry over unused amounts to subsequent months for an indefinite period, so long as the amounts are used solely for qualified transportation benefits (parking, transit passes and vanpooling). You cannot get your account balance back in cash.
Can I increase or decrease my monthly contribution to a transportation plan according to my needs?
Yes, check with your employer to see how frequently they allow changes.
My employer contributes part of my transportation expense and I contribute the rest. How is the limit applied?
The combination of both employer and employee contributions to this benefit cannot be more than the monthly statutory limit.
I pay for a 3-month transit pass in advance. How does that work with the allocated monthly limit?
The value of the multi-month pass may be divided by the number of months for which it is valid for purposes of determining whether the monthly statutory limit has been exceeded.
How are the monthly limits allocated month-to-month in a transportation plan?
The monthly expense must be calculated on a monthly basis.
Example #1: January’s ferry + bus combination = $280. In 2019 the statutory limit is $265. Only $265 can be reimbursed. The unpaid balance of $15 cannot carry over to a future month.
Example #2: January’s transit expenses are $170. July’s transit expenses are $280. July’s reimbursement is $265, the maximum monthly limit in this example. January’s smaller expense total has no bearing on reimbursing more than the maximum monthly limit in July.
What are the limits to how much I can be reimbursed in each transportation account?
Each year, the IRS sets the limit for the calendar year limit. Click this link to see the maximum monthly limit for each benefit.
Can an employer limit which employees participate in a transportation plan?
Employers cannot act arbitrarily and should administer it on a uniform and consistent basis. Employers do have considerable discretion to determine which employees will be allowed to participate. Participation could be limited to work location, full-time employees, to a group of employees that is disproportionately highly compensated, or even to employees selected on a discretionary, case-by-case basis.
What type of employee cannot participate in a transportation plan?
The following employees are excluded from participating in the plan: contract workers, independent contractors, temporary employees, former employees, individuals paid by an employment agency, collectively bargained employees, self-employed individuals, partners, and more-than-2% shareholders of a Subchapter S corporation.
What type of employee can participate in a transportation plan?
Only individuals who are “currently employees at the time the Qualified Transportation plan is provided” are eligible to participate. The term “employee” includes only common-law employees (receiving W-2), other statutory employees (such as officers of corporations), and leased employees.
What type of employer can sponsor a Qualified Transportation Plan?
Any employer can sponsor a Qualified Transportation plan for its employees no matter what size. Eligible employers include corporations (Subchapter S or Subchapter C), partnerships, non-profit organizations, government entities, limited liability companies (LLCs) limited liability partnerships (LLPs) and sole proprietorships. (Caution: certain owners are ineligible to participate). Government employers can sponsor plans as can companies in the private sector.
What is the new Seattle City Transit Ordinance?
The City of Seattle has passed a Commuter Benefits Ordinance, which becomes effective on January 1, 2020. Businesses with 20 or more employees will be required to offer their employees the opportunity to make a monthly pre-tax payroll deduction for transit or vanpool expenses. The ordinance encourages commuters to use transit options other than single occupancy vehicles, thus reducing traffic congestion and carbon emissions. Because the deduction is pre-tax, the law has the added benefit of lowering the tax bills for both workers and businesses.
Official City of Seattle Links:
What is the definition of “transit passes”?
“Transit pass” means any pass, token, farecard, voucher, or similar item that entitles a person to transportation on mass transit. There are different types of mass transit facilities – busy, ferry, rail, subway, monorail, streetcar, and tramcars, among others. Vanpool expenses may also have transit pass expenses if the vanpool is in the business of transporting persons for compensation or for hire and if the seating capacity of the vehicle is at least six adults (not including the driver).
What is the definition of “parking”?
If an employee commuting to work has parking expenses associated with that commute, those expenses can be paid by either the employer, the employee or a combination of both.
What types of benefits are available with a transportation plan?
Parking, transit passes and vanpooling (bicycle commuting reimbursements removed from eligibility in 2018). See more information here.
What if I should become disabled? Are there any extensions available to my COBRA coverage?
Yes. If you have been “deemed disabled” by Social Security, you will receive an “award” letter. This letter must be submitted to the COBRA insurance carriers within 30 days of the date on the “award” letter. The insurance carriers will extend COBRA eligibility from 18 to 29 months (no extension available if the COBRA participant is already eligible for 36 months).
Can COBRA be extended for my dependents?
Yes. If a covered dependent incurs a qualifying secondary event. Such an event includes, a covered dependent experiences a divorce, a legal separation, a loss of dependent status, or a death during the 18-month COBRA eligibility period. This entitles the covered dependent to a total of 36 months of COBRA eligibility.
What happens if I remain on COBRA until the end of my 18 or 36 months of eligibility?
You cannot stay on COBRA after your eligibility period ends. You must find other coverage. You will be mailed a Conversion Letter six months before the end of your COBRA eligibility to remind you that your COBRA coverage cannot be extended and you must convert to an Individual, Exchange or other group policy.