IRS SECTION 125 FLEXIBLE SPENDING ACCOUNT. The City provides a flexible spending account for medical expenses and dependent care, pursuant to Section 125 of the Internal Revenue Service Code (Section 125), as amended. Under Section 125, the maximum annual amount an employee may contribute for future medical and dependent care expenses reimbursement is two thousand five hundred dollars ($2,500), exclusively. Pursuant to Section 125, employees may contribute pre-tax earnings into these accounts. The medical expense contribution may be used for reimbursement of medical expenses such as deductibles, co-pays and expenses in excess of what insurance covers. Dependent care expenses may not be reimbursed until after they are actually incurred - i.e., after the care has been provided, and not when the participant is formally billed. Reimbursable dependent care expenses are non- health care expenses that include insuring a qualified dependent’s well-being and protection. Qualified dependents are children under age 13, disabled spouses and other dependents who are physically or mentally incapable of self-care, and who regularly spend at least eight hours each day in the taxpayer's household. Pursuant to Section 125, eligible reimbursable expenses must be incurred within the calendar year, January 1st through December 31st, and must be submitted for reimbursement no later than March 31st of the following calendar year. Receipts submitted after March 31st in the following calendar year shall be forfeited. There are other limitations and restrictions set forth by the Internal Revenue Service.
IRS SECTION 125 FLEXIBLE SPENDING ACCOUNT. Section 125 of the Internal Revenue Code authorizes an employee to reduce taxable income for payment of allowable expenses such as child care and medical expenses. The City shall maintain a “reimbursable account program” in accordance with the provisions of Section 125 of the Internal Revenue Code, pursuant to which a full-time Association member may request that medical, child care and other eligible expenses be paid or reimbursed by the City out of the employee’s account. The base salary of the employee will be reduced by the amount designated by the employee for reimbursable expenses.
IRS SECTION 125 FLEXIBLE SPENDING ACCOUNT. The City provides a flexible spending account for medical expenses and dependent care, pursuant to Section 125 of the Internal Revenue Service Code (Section 125), as amended. Under Section 125, the maximum annual amount an employee may contribute on a pre-tax basis is statutorily set. Pursuant to Section 125, employees may contribute pre-tax earnings into these accounts. The medical expense contribution may be used for reimbursement of medical expenses such as deductibles, co-pays and expenses in excess of what insurance covers. Dependent care expenses may not be reimbursed until after they are actually incurred - i.e., after the care has been provided, and not when the participant is formally billed. Reimbursable dependent care expenses are non-health care expenses that include insuring a qualified dependent’s well-being and protection. Qualified dependents are children under age 13, disabled spouses and other dependents who are physically or mentally incapable of self-care, and who regularly spend at least eight hours each day in the taxpayer's household. Pursuant to Section 125, eligible reimbursable expenses must be incurred within the calendar year, January 1st through December 31st, and must be submitted for reimbursement no later than March 31st of the following calendar year. Receipts submitted after March 31st in the following calendar year shall be forfeited. There are other limitations and restrictions set forth by the Internal Revenue Service.
IRS SECTION 125 FLEXIBLE SPENDING ACCOUNT. The Board shall provide to the extent available under the Internal Revenue Code and Regulations (Section 125) a flexible spending account for the payment of unit members’ insurance premium contributions on a pre-tax basis, and other contributions agreed to by the Board and the Association. This is done at no cost to the employee.
IRS SECTION 125 FLEXIBLE SPENDING ACCOUNT. Section 125 of the Internal Revenue Code authorizes an employee to reduce taxable income for payment of allowable expenses such as child care and medical expenses. The City shall maintain a “reimbursable account program” in accordance with the provisions of Section 125 of the Internal Revenue Code, pursuant to which an Association member may request that medical, child care and other eligible expenses be paid or reimbursed by the City out of the employee’s account. The base salary of the employee will be reduced by the amount designated by the employee for reimbursable expenses. The City’s obligation to establish a reimbursable account program is contingent upon the City incurring no cost or potential liability relative to the plan or its administration. City shall cooperate to the fullest extent of the law, provided, however, City may require the plan to contain provisions that authorize the administrator to pay allowable expenses only upon submittal of a demand from the City. Any “reduction” in salary pursuant to this Section and/or the Section 125 Plan established by the City, shall not affect any other provision of this MOU.
