Frequently Asked Question
I have out-of pocket medical expenses. Is any plan available to assist in paying these expenses?
Last Updated 10 years ago
Filling Home has a Section 125 Plan that may help with these medical expenses. This plan provides an opportunity for an employee to reduce their payroll taxes by having monies set aside from their pay for medical expenses. An employee may estimate the amount anticipated for out-of-pocket medical expenses for the calendar year. Paperwork would need to be completed (usually in December for the upcoming year). A pre-tax payroll deduction would be experienced at each payroll period. These monies would be available for reimbursement as the employee experienced out-of-pocket medical expenses. Any unused monies at the end of the calendar year would be forfeited by the employee.
Another option to help with out-of-pocket medical expenses exists with enrollment in a Health Savings Account. Employees are encouraged to set up an account with a bank of their choice (a special account only for the payment of qualified medical expenses). Employees would then select from two options for the tax savings. One option would be to have the monies withheld on a pre-tax basis and Filling Home would forward the monies to the employee’s bank account. With the other option, the employee would select to have the monies sent to their bank as part of their direct deposit with the tax savings realized at the time of their annual income tax return filing. When the employee would experience a qualified medical expense, it would be paid with this special bank account. If monies are available at the end of the calendar year, these monies would then carry-over for use in the next calendar year.
Another option to help with out-of-pocket medical expenses exists with enrollment in a Health Savings Account. Employees are encouraged to set up an account with a bank of their choice (a special account only for the payment of qualified medical expenses). Employees would then select from two options for the tax savings. One option would be to have the monies withheld on a pre-tax basis and Filling Home would forward the monies to the employee’s bank account. With the other option, the employee would select to have the monies sent to their bank as part of their direct deposit with the tax savings realized at the time of their annual income tax return filing. When the employee would experience a qualified medical expense, it would be paid with this special bank account. If monies are available at the end of the calendar year, these monies would then carry-over for use in the next calendar year.