Section VI - Employment Matters

VI D 13

Benefits - Flexible Spending Accounts

To describe the Flexible Spending Accounts available to College employees

Flexible Spending Accounts are available to all permanent full-time employees. The plan allows employees to make monthly payroll deductions on a pre-tax basis for dependent care, medical expenses, insurance deductibles, and insurance co-payments. A monthly amount is subtracted from the employees’ gross earnings before taxes. The payroll withholdings are accumulated in a reimbursement account.

The Flexible Spending Plan qualifies under Code Section 125 of the IRS and will be available each year during Open Enrollment. When an employee contributes pretax dollars to a reimbursement account, they lower their taxable income; therefore, employees pay less in taxes and increase their spendable income.

Contact the Human Resource Office for further information.

Adopted: 01/20/2001