Health Care FSA and Dependent Care FSA Questions?
Friday, November 12th, 2010 at
3:44 am
1.Health Care FSA: Since I signed up the family insurance plan (me, husband, and the baby when he is born), does it mean the monthly medical insurance premium I paid is not eligible for FSA expense? If so, will my portion of the monthly premium be eligible?
2.Dependent Care FSA: I’m planning to have a nanny to take care of the baby after I return to work. How do I reimburse it since it’s paid to individual? Will check copy work?
Tagged with: dependent care • family insurance • FSA • health care • insurance • insurance plan • insurance premium • medical insurance • nanny
Filed under: Medical Health Insurance Plans
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If your insurance provided by your employer? Then you need to speak to them about the relationship between the health care FSA and the insurance premiums. They may or may not be connected.
Usually the health insurance premiums are taken out of your pay before taxes, and are not reimbursed by the FSA. In this case no reimbursement or deduction is allowed as the premiums are tax-free to you.
Your FSA will not reimburse you for child care. If your employer has dependent care benefits, sign up for those when you need those benefits. Then it may be possible for the nanny’s pay to come directly from the dependent care benefits account, or for you to present proof of payment to the plan for reimbursement. Your plan will tell you what is adequate proof. A copy of a check may or may not be adequate. A bank record showing that the amount was taken out of your account is likely going to be adequate proof.
hey, I suggest u see http://ebiznus.com/ for this.
I hope this will be resolving your problem you can also browse more for this on answers.yahoo.com but i think you better look at what i suggested instead of wasting ur time.
Best of luck.
Working as a nanny is a cultured profession
1. Check with work. The premiums are almost *always* already pretax, so you cannot deduct them twice. The FSA is for *other* expenses.
2. As for the nanny, you have several issues. One is that *you* are the employer and you must read IRS pub 926 and understand your obligations for withholding fica/mc, income tax and issuing a W-2. (Tell us if your nanny is an au pair as the rules are different if they are a foreigner on a work visa.)
As for using the dependent care FSA to pay the Nanny (including the employer’s share of fica/mc), you really should discuss this with the plan administrator. You probably need to show a contract, a copy of the check, your calculations, etc.