Client Administration Manual

FlexSystem Client Administration Manual 1

Client Administration Manual


This Administration Manual provides all of the guidance you need to properly manage your FlexSystem Plan. You will

also receive an invitation to attend a webinar or a one-on-one phone call. This will help educate you on the require-

ments necessary to keep your Plan compliant and all the benefits we offer to help you do so. In the meantime, if you

have any questions pertaining to your FlexSystem Plan, call us at 608-241-1900 or toll-free at 800-422-4661. For speedi-

est service, please have your 12-digit TASC ID available whenever contacting us.

Welcome 3

Getting Started 4

Business Processing Event Time Line 8

FlexSystem Defined 9

FlexSystem Reimbursements 10

TASC Card Reimbursements 11

Reimbursement Requests 13

Off-Set Balance Corrective Procedure 14

Use It or Lose It Rule 15

MyTASC Mobile 16

Payroll Verification Report 17

CHIPRA Model Notification Requirements 19

Claim ConneX 20

Qualified Reservist Distribution 21

Non-Discrimination Testing 22

IRS Form 5500 22

Plan Finalization 22

Dependent Care Qualifications 23

Dependent Care FSA vs. Dependent Care Credit 25

Non-Employer Sponsored Premium 26

Transportation Fringe Benefits 27

Health Savings Accounts 28

FlexSystem Renewal 29

TASC Invoicing Practices 30

Table of Contents

Forms

Please visit www.tasconline.com/flexsystem-

documents to download forms and other

documents as needed.

www.tasconline.com/flexsystem-documents

Welcome

Congratulations on your purchase of a FlexSystem Plan.

Reimbursement accounts are among the nation’s leading employer-sponsored benefits

programs, and provide a significant tax savings to employees and employers alike. Offering

a reimbursement program greatly enhances your company’s employee benefits package,

which in turn helps attract and retain motivated employees. Meanwhile, you save payroll

taxes for each and every dollar of employee participation.

The higher participation by employees in your FlexSystem Plan, the more you will save

in taxes each year. It’s easy to monitor activity and participation in your FlexSystem Plan

through our handy MyService Center in your MyTASC account at www.tasconline.com. We

deliver accessible information and work hard to ensure greater visibility and accountability

of our services.

Visit our TASC news site at www.tasctracker.com and subscribe to receive news updates via

email. Must-know information regarding TASC products is posted regularly on this site.

We look forward to serving you and your employees!

WELCOME TO THE PLAN!


Online Enrollment

The entire FlexSystem enrollment process can be ef-

fectively and efficiently accomplished online. While

we continue to accept enrollments that are sub-

mitted on paper, we strongly encourage the online

method, for many reasons. Enrolling online saves

you time; it’s the swiftest way to submit your enroll-

ments. Enrolling online puts you in control; it elimi-

nates potential mistakes in data entry and ensures

the secure submission of this information. Finally,

enrolling online eliminates the need for paper and

reduces paper waste.

Please encourage your employees to enroll online.

It’s easy! To begin, give each employee a copy of the

Participant Enrollment Guide and the How to Enroll

Online flyer. (Download forms from www.tasconline.

com/flexsystem-documents.) Remind employees

that they may choose not to elect a certain benefit

by checking the “decline benefit” option; you will be

able to retrieve and file their noted preferences for

your records.

Set and communicate a clear enrollment dead-

line and remind your employees as that deadline

approaches. As you determine this date, be sure

to allow yourself ample time to review and subse-

quently submit the information so it is received by

FlexSystem two weeks prior to your Plan start date,

at minimum. If your Plan starts on January 1, enroll-

ments must be finalized no later than December 7 to

ensure Participants receive TASC Cards by January 1.

Be sure to let Participants know they may call 608-

241-1900 or 800-422-4661 to contact a FlexSystem

Customer Care Specialist for assistance with the

enrollment process. Clarify to your employees that

they will need their Enrollment Form, TASC Client ID

number, and company name ready when they call.

Prior to employees completing the enrollment pro-

cess, your online account must be set up and verified.

To do so, follow these steps:

1. Log in to MyTASC at www.tasconline.com using

your TASC ID that was emailed to you and set

up your password. You can also obtain your

TASC ID by contacting Customer Care at

608-241-1900 or toll-free at 800-422-4661.

2. Once you are in MyTASC, click on Profile and set

your online enrollment pref-

erences. The online enrollment

may be available all year for

new employees or may be set

to allow online enrollment

during your open enrollment

period only.

3. Select Plan Management and

enter the Plan’s account

information, such as eligibility

requirements, Plan maximums,

Grace Period, Runout dates, and

Plan co-pays (if your Plan has

the TASC Card). Also, please

note: Employee salary reduc-

tions are limited to $2,500

(indexed annually for inflation)

for the Medical Out-of-Pocket

Expenses Plan. Employers with

short Plan Years must pro-rate

this amount.

4. Enter the Payroll Verification Report dates. These

are the dates TASC should expect to receive the

Participant payroll contributions for each payroll

cycle. All dates must be entered. This is very

important to ensure the payment of Partici-

pant Requests for Reimbursement will not be

interrupted.

5. Verify your Plan

status shows as Set

Up on the Plan

Management

Summary page

so Enrollment

for employees

can begin.

Getting Started


The Payroll Verification Report dates are the

dates the ACH is initiated from your account.

The actual transfer may occur one or two days

later. The Payroll Verification Report dates do not

have to be the same dates as employee’s pay

dates, however the dates should be close to the

pay dates to ensure funds are deposited in their

FlexSystem account about the same time it is

deducted from their paycheck.

6. From the Client Manager page, enter your

carrier information by selecting the Client

Carrier Information link under the General

options. Simply select the Carrier from the drop

down list, enter the group number, status, and

Plan Year.

Completing Your Online Enrollment

After the close of your enrollment period – whether

your employees have enrolled online or have sub-

mitted their paper enrollment forms – you must

complete the enrollment process.

You may begin your part of the enrollment process

even before all of your employees have provided

their enrollment information. Use the Enrollment

Management tool to submit the information to Flex-

System at least two weeks prior to your Plan start

date, or by December 7 for Plans starting on January

1. Additional employee elections received after that

point can be added using the Enrollment Manage-

ment area of MyTASC.

Paper Enrollment

If you prefer that your employees not use the online

enrollment feature, distribute an Enrollment Form

and a Participant’s Enrollment Guide to each eligible

employee. (Download forms from www.tasconline.

com/flexsystem-documents.) Feel free to customize

the Enrollment Form so it lists only the benefits you

have elected; do so at the MyTASC website by click-

ing on the Download Customized Enrollment Forms

link. And you may further fine-tune the materials

with a special envelope, insert, or memo.

Entering Employee Elections

For employees who have completed the online

enrollment process, skip to Finalizing Your Enroll-

ments. For employees who have submitted a paper

Enrollment Form, you must still enter their enroll-

ments online. To do so, follow these easy steps:

1. Log in to your MyTASC account

(www.tasconline.com) using your username

(or 12-digit TASC ID) and password.

2. Click on Enrollment Management.

3. Select the appropriate Plan from the drop

down box.

4. Click on Enroll Participant, then New Participant.

5. Enter the employee’s demographic information,

including their email (this allows TASC to send

benefit related emails to the Participant such as

balance information and claim and payment

status). Select Next when finished.

6. Enter the employee’s benefit elections and click

on Next.

7. Review your entry. If it is correct, click on Sub-

mit; the employee name will now appear in the

Unapproved Enrollment Tab above.

8. Repeat this process until each employee’s

information is entered. For a faster way to

enter Participants, see the Excel Download/

Upload Section.

9. It’s easy to make changes for an employee

you have entered but not yet submitted. To do

so, click on Profile to edit their demographic

information, or on Elections to edit their

benefit elections.


Using an Excel Download/Upload to Complete Enrollment

While it’s easy to enter your employees individually

with the MyTASC interface, you may prefer to enter

the data into a Microsoft Excel spreadsheet and to

subsequently upload your enrollment data in that

format. To do so, please follow these steps to com-

plete the process:

1. Log in to your MyTASC account

(www.tasconline.com) using your username

(or 12-digit TASC ID) and password.

2. Click on Enrollment Management.

3. Select the appropriate Plan from the drop down

box.

4. Click on Download Enrollment Input File. Click

on Download in the pop-up window.

5. Click Open.

6. Enter your Client TASC ID in the first column

and be sure to repeat this step for each Partici-

pant.

7. Leave blank the areas assigned for the Partici-

pant TASC ID. FlexSystem will assign these

numbers at the time of upload.

8. Enter the employee’s demographic information

including their email address (this allows TASC

to send benefit-related emails to the Participant

such as balance information and claim and pay-

ment status) and benefit elections. You may be

able to copy and paste from your database;

however, do not change the existing format of

the FlexSystem spreadsheet.

9. Save the Excel spreadsheet to a local drive.

10. Return to your Enrollment Management tools

and select Upload Microsoft Excel Enroll Spread-

sheet.

11. Click on the Browse button, find and highlight

your saved file, select Open. (After selecting

Open, you will need to refresh the page by

going to Client Manager and then back to Enroll-

ment Management to continue.)

Finalizing Your Enrollments

After you have entered and confirmed the accuracy

of your employee enrollments, you are ready to ap-

prove them and to formally submit them to FlexSys-

tem. Don’t wait for a few missing enrollments; you

can add them later (see below). You may submit your

enrollments to FlexSystem by internet or on paper.

Both methods are detailed below.

Finalizing Online

1. Click on Unapproved Enrollment. Your list of

employees will appear. Click on Approve to ap-

prove the enrollment of each employee, one by

one. (Remember to return to this step later to

approve any employees you skipped over.) To

approve all employees in one step, simply click

the Approve All tab in the lower right corner.

2. Either method will move the approved employ-

ees to the next phase: Approved But Not Sub-

mitted Enrollment. Please note, if employees are

not listed in this tab and they are still in the

Unapproved Enrollment tab, then the upload

failed. Look for an email from tasconline.com.

The email will tell you what is wrong and why

the upload failed. Once most of your employees

are entered into the system, simply click Submit.

3. The first part of your enrollment is complete!

Verify your Plan status on the Plan Management

Summary page has changed to Enrolled. You

are now ready to review and pay your first Pay-

roll Verification Report online!

Finalizing by Paper

If you have no internet access, submit your employ-

ees’ paper Enrollment Forms to FlexSystem by mail

or fax. Retain any zero (0) election forms for your

records. They need not be submitted.

Make TASC a Trusted Site

If you do not receive an expected email, check

your Junk Email. To ensure that you receive

important notifications, please add www.tas-

conline.com and [email protected]

to your list of trusted contacts or approved

senders.


Payroll Verification Report

The PVR compiles all payroll deductions for all

Participants, and you must provide an updated ver-

sion with each payroll submission. In addition, the

PVR is used to notify FlexSystem of employment

terminations and changes throughout the Plan Year.

If you use our online Enrollment Management tool,

your online Payroll Contribution Verification Report

(PVR) will be ready immediately after you finalize

your enrollment. Just as with electronically submit-

ting your initial enrollments, submitting your PVRs

online is the most efficient, accurate, and secure

method for transmitting this information to FlexSys-

tem. (Find more information regarding the PVR in

the Payroll Verification Report Section found later in

this Manual.)

You will need to access the Payroll Verification Re-

port (PVR) to verify Participant’s deduction amounts

and review your current funding selection before

submitting payment of your payroll deductions. This

must be completed after the start date of your Plan

and before your first Payroll Verification Date. To do

this, follow the steps below:

1. Select Client Manager and then Payroll Verifica-

tion Report (PVR).

2. Select the new Plan Year and review all Partici-

pant’s deduction amounts. The amounts in

MyTASC must match each employee’s payroll

deduction amount.

3. To view the total deduction amount for each

benefit, select the By Benefit Link at the top left

of the Participant Listing next to By Participant.

4. Edit deductions that are incorrect for each

Participant.

• SelecttheAccountlinknexttothePartici-

pant’s name.

• SelecttheContributionTab.

• ClickontheChangelink.

• UnchecktheboxofAutoAdjust(bottomleft

of page) prior to changing the contribution

to also change the annual amount. Leave it

checked to only change the contribution

amount.

• Editthecontributionamount(s).

5. Submit payment by selecting the Submit button.

Be sure to do this in advance of the Expected

Date of Receipt listed on the Payroll Verification

Report (PVR Date). This will ensure funds are

available for Participant’s requests for reim-

bursement. Note: This step is not necessary

if the Auto ACH feature has been enabled on

your Plan.

These steps will need to be repeated for every pay-

roll throughout the Plan Year.

Your Enrollment is Complete

Your Participants are now enrolled and your Flex-

System Plan is in place and operating! FlexSystem

will promptly send a welcome letter and Participant

Reference Guide directly to each Participant at their

home address (or email address if provided). In the

meantime, your Participants may submit reimburse-

ment requests via the online Request for Reimburse-

ment Wizard in MyTASC.

After the start of the Plan Year, a Summary Plan

Description (SPD) is available online under Plan

Management. This document outlines the param-

eters and benefits that your company selected with

our FlexSystem Plan Application. In accordance with

IRS regulations, the SPD must be provided annually

to all employees who are eligible for participation in

our FlexSystem Plan. This applies to any new hires,

as well as to employees who may become eligible for

the Plan in the future. Please duplicate the SPD and

distribute copies to your employees.


Business Processing Event Time Line

Event Kit Event Title Time Allotted Responsibility 1. Submit application with fees. Varies* Provider/Client

2. TASC receives application, sets up fee, and reviews, TASC enters, and assigns ID. Plan status changes to Set Up. Employer receives initial MyTASC login instructions via email. 1+ days (Clean) TASC 3. TASC sends a Welcome email (or fax). 1 day TASC 4. TASC schedules education call or webinar with Client Contact 1 week TASC/Employer/ ProviderEvent One 5. TASC emails material for enrollment meeting along with Client Administrative Manual. Download enrollment materials: www.tasconline.com/flexsystem-documents 1+ days TASC 6. Employer holds Enrollment Meeting. Varies* Provider/Employer

7. Employer’s open enrollment begins. Employees may go online and complete their enrollment or the employer may collect paper enrollments and enter the Participant enrollment information online. Once the employer completes the Submit process, the enrollment is completed and the Plan status changes to Enrolled. Varies* Employer/Provider 8. If paper enrollment is completed, TASC receives and processes enrollment information and populates accounts. Payroll Verification Report (PVR) opens. 1-3 days TASC 9. TASC Cards are elected and ordered. 2 weeks to recieve TASC

Event Two 10. Participant accounts are open and reimbursements for medical out-of-pocket expenses for the current TASC Plan Year begin. 1 + days and Post Office Event Three 11. Employer reviews and submits PVR online. Varies* Employer

12. If employer submits PVR and paper check to TASC, PVR is recieved at TASC and it is edited, 1 day (Clean) or TASC entered, and posted to accounts. 2 days (Unclean) Note: Claims for dependent care, non-employer sponsored insurance premiums, and transportation expenses may begin at this point.

Event Four 13. Employer prints Summary Plan Description (SPD) and distributes to all eligible employees. After start of Employer Plan Year

* TASC cannot pinpoint the number of days this event will require, as the responsibility for this event is beyond TASC’s control.


What is a Section 125 Cafeteria Plan?

Section 125 Cafeteria Plans (also called Flexible

Spending Accounts or FSAs) allow Participants to

elect or set aside pre-tax dollars to pay for medical

out-of-pocket expenses, dependent care expenses,

non-employer sponsored medical-related insurance

premiums, and qualified transportation expenses.

In addition, a Health Savings Account can be set up

under a Section 125 Cafeteria Plan. (A more detailed

explanation of these benefits appears later in this

Manual.) The amount deducted from the Partici-

pant’s salary to pay for these expenses is called an

election. Because these expenses are paid with pre-

tax dollars, Participants are taxed on a lower gross

salary, thereby saving money that would otherwise

be spent on federal, state, and FICA taxes. As the

employing company, you save on your portion of

FICA taxes (7.65 percent for every dollar a Participant

runs through the FSA).

Who is Eligible?

The FlexSystem FSA Plan regulations require all

Participants in the Plan to be employees of the em-

ployer. As such, eligibility to participate is generally

limited to common-law employees of the employer

and the specific eligibility requirements for the Plan

are set out in the Plan Document and Summary Plan

Description. It is important to note there are indi-

viduals who are specifically excluded from partici-

pating in an FSA Plan. For instance a sole proprietor

can sponsor an FSA Plan; however, the sole propri-

etor is not considered an employee and thus cannot

participate. The same holds true for Partners in a

partnership. In addition, more-than-2% sharehold-

ers of an S-Corporation are not eligible to partici-

pate and due to attribution rules, the shareholder’s

spouse, children, parents, and grandparents are also

excluded from participation.

How FlexSystem Works

Participants must enroll in FlexSystem at the start-

up of a new Plan or at the time they become first

eligible for a Plan, and must renew (re-enroll) at the

start of each subsequent Plan Year. At that time, all

eligible Participants must choose their election(s) for

each benefit in which they will be participating. The

elections are specific to each type of Flexible Spend-

ing Account (FSA), meaning that dollars set aside

for dependent care can be used for dependent care

only, and not for medical out-of-pocket expenses,

etc. With a Section 125 Plan, the employee’s por-

tion of group-sponsored premiums can be deducted

pre-tax. These amounts, along with any employer

portions are sent to the insurance provider directly.

You deduct the FSA-elected amounts from each Par-

ticipant’s payroll pre-tax and deposit the withhold-

ing amounts with FlexSystem. FlexSystem main-

tains these funds in an account until the Participant

requests reimbursement.

Health Insurance Portability and Accountability Act (HIPAA)

As a result of HIPAA, employers who sponsor a

healthreimbursementplanaresubjecttoregula-

tions that ensure the privacy and confidentiality of

individual health information, otherwise known as

Protected Health Information (PHI). The HIPAA Com-

pliance Manual provides information regarding the

requirements and regulations of HIPAA. To access

the HIPAA Compliance Manual, go to http://www.

tasconline.com/about-tasc/consumer-protection-

program/ and select the link at the bottom of the

Health Insurance Portability & Accountability Act

section.

Audit Guarantee

FlexSystem will support and assist any enrolled

employers or Participants who adhere to our Plan

procedures and parameters and nevertheless have

their Section 125 Cafeteria Plan challenged by the

Internal Revenue Service. We will provide:

• PlanDocumentation

• PlanCommunications

• ClaimandAccountInformation

• InformationonForm5500Filing

• Allotherrelativenecessaryinformation

regarding FlexSystem or other filing

requirements related to the Plan.

Additionally, if all procedures are adhered to, Flex-

System will assume financial responsibility for any

penalty and/or interest charged as a result of an

audit that results in the payment of additional Fed-

eral, State, Social Security, or Medicare tax as these

pertain to FlexSystem. FlexSystem will also assume

financial responsibility for any penalty issued by the

Internal Revenue Service or Department of Labor

for untimely reporting or lack of reporting as these

pertain to FlexSystem.

FlexSystem Defined


A Participant may request reimbursement any

time a qualified expense has been incurred. The

service related to the expense needs only to have

taken place; it need not be paid before requesting

reimbursement. The Participant simply needs to

complete and submit a Request for Reimbursement

Form. Most Participants find it easiest to submit

their reimbursements online. Online instructions are

found later in this Manual. Participants who have

no computer access or who prefer to submit their

reimbursement requests on paper should follow the

instructions on the next page.

The Participant may only claim reimbursement (a)

for eligible expenses incurred during the applicable

Plan Year, or subsequent Grace Period (if applicable)

(b) made by eligible Plan Participants, (c) for expens-

es that have been neither previously reimbursed

under this or any other benefit plan nor claimed as

an income tax deduction. It is the Participant’s re-

sponsibility to comply with these guidelines and to

avoid submitting duplicate or ineligible claims. Fail-

ure to comply may delay payment. FlexSystem pro-

cesses Requests for Reimbursements on a daily basis

and payments are initiated within 48 to 72 hours of

receipt of a complete and accurate reimbursement

request. All reimbursements are deposited directly

into a Participant’s MyCash account.

Participants with direct deposit (set in MyCash Man-

ager as Automatic Transfer to a bank account) must

check with their financial institutions for availability

of funds. TASC is not responsible if a Participant’s

bank account is assessed non-sufficient funds fees

in anticipation of required deposits to cover

FlexSystem Requests for Reimbursements.

For dependent care, independent insurance premi-

ums, and transportation reimbursements, a Partici-

pant must have sufficient funds in his/her account

in order for the full request to be reimbursed. If

funds in the account are insufficient to cover the

entire request, a reimbursement will be issued for

the balance in that particular account at the time.

The outstanding balance of the request will remain

an open item until additional deposits are received,

at which time an additional reimbursement will be

issued.

Uniform Coverage Rule

In accordance with the Internal Revenue Service’s Uni-

form Coverage Rule, a Participant’s total annual health

FSA election amount must be available at all times dur-

ing the Participant’s period of coverage (less any prior

reimbursements). Therefore, a Participant’s health FSA

annual election cannot relate to the amount contribut-

ed to the health FSA during their active coverage period

and any negative contribution balances are the respon-

sibility of the Employer. In sum, when a Participant

terminates their health FSA and the reimbursements

to the Participant exceed the amount of contributions

taken, the Employer is responsible for funding the dif-

ference. This is the Employer’s part of the risk feature

required of a Cafeteria Plan. The risk to the Participant

is when they are not able to use all of the funds they

contributed to the Plan (the Use-or-Lose Rule).

Account Communication

Participants may select how they want to receive

communications. They may sign up online in

MyTASC (www.tasconline.com) to receive com-

munications via text message or email. They need

to select Profile from the Participant home page

and enter their email address and mobile number.

(A valid email address must be entered to receive

text and email messages.) Once entered, a message

with a verification number will be sent to their email

address. They must enter the verification number in

their Profile and select OK.

Notifications may be sent for any of the following:

• UponreceiptofaRequestforReimburse-

ment (RFR).

• WhenaRFRhasbeenpaid.

• WhenaRFRhasbeendenied.

• RFRForms.

• Currentbalanceinformationbeforethe

end of the Plan Year, including Grace

Period and Runout dates.

Transfers of reimbursement funds may also be veri-

fied by viewing your MyCash Manager, by checking

with your bank, by calling Customer Care, or by

calling the TASC Interactive Voice Response System

(608-241-1900 or 800-422-4661).

FlexSystem Reimbursements


What is the TASC Card?

The TASC Card features two accounts on one card—

MyBenefits for employee benefits purchases—and

MyCash for cash reimbursements.

Participants can visit MyTASC (www.tasconline.

com) and click TASC Card Management to view card

information, request a dependent card, reissue a card

(due to never received, damaged, lost/stolen, or name

change), request a PIN, and view allowed benefits.

MyBenefitsThe TASC Card looks like a typical debit card, but is

used as a credit card for eligible medical, dependent

daycare, or transportation expenses, based on the

funds available in a Participant’s benefits account.

Card purchases are limited to the Plan types elected,

and also to merchants with an inventory informa-

tion approval system (IIAS) in place to identify

FSA-eligible purchases. At the point of purchase, the

IIAS automatically approves the purchase of eligible

items and payment is made automatically to the

authorized merchant from the Participant’s benefits

account.

In some cases, FlexSystem may require additional

information or documentation regard ing the TASC

Card transaction. Participants are expected to main-

tain this documenta tion from their TASC Card trans-

actions to validate the expense and are obligated

to submit the documentation as deemed necessary.

Failure to submit such

documentation may re-

sult in the expense being

deemed ineligible or the

immediate suspension of

the benefit.

MyCashTASC Card holders who

do not use their TASC

Card to pay for an eligible

benefit expense may

manually submit a re-

quest for reimbursement (online, mobile device, fax,

or mail). Reimbursement for the out-of-pocket ben-

efits expense will be deposited in the Participant’s

MyCash account. MyCash funds can be accessed in

three ways: (1) swipe the TASC Card at any merchant

thatacceptsmajorcreditcards,(2)withdrawatan

ATM (with a PIN) using the TASC Card, or (3) transfer

to a personal bank account (from MyCash Manager

within MyTASC). Funds in MyCash can be spent any

way and anywhere; purchases are not limited to a

merchant or by type of ex pense.

If a Participant prefers direct deposit, the Participant

should schedule an Automatic Transfer to a Bank Ac-

count from MyCash Manager. If a check is preferred,

the Participant should set the Transfer Method to

Paper Check. (A check convenience fee may be ap-

plied per check.)

MyWay With access to two accounts on one card, the TASC

Card is more versatile than ever! It protects against

embarrassing declines; MyCash funds can be used

to pay for eligible expenses if no funds are available

in the MyBenefits account. It pays for healthcare and

general expenses in one transaction—the TASC Card

is smart enough to know that eligible expenses are

paid from MyBenefits and ineligible expenses are

withdrawn from MyCash! Cardholders can transfer

funds at any time in any amount (up to the fund bal-

ance). Plus, MyCash is an easy way to save money!

When reimbursements accumulate in MyCash, the

“special stash” can be used for a vacation or shop-

ping spree.

TASC Card Reimbursements

Client Name

REQUEST FORREIMBURSEMENT

New Address, check here and update - please print

/ / .

Date of Service (notbilling or paid date) Service Provider(s)Request Amount

BenefitCode*

To the best of my knowledge and belief, my statements on this Request for Reimbursement are complete and true. I am requesting reimbursement only foreligible expenses incurred during the applicable Plan Year and for eligible Plan Participants. I certify that these expenses have not been previouslyreimbursed under this or any other benefit plan and will not be claimed as an income tax deduction. I understand that the IRS regulates my FlexSystemaccount and that these guidelines are implemented as a means of ensuring compliance and approval for reimbursement. I further understand that it is myresponsibility to comply with these guidelines and to avoid submitting duplicate or ineligible requests, as doing so may delay payment. I authorize myFlexible Spending Account balance to be reduced by the amount requested.

Employee Signature (required) Date / /

PLEASE DUPLICATE THIS FORMFOR FUTURE REQUESTSSubmit Request for Reimbursement:For claims submitted online: only print and fax the Veriflex Coversheet fromthe web along with your receipts to the fax number located on the cover sheet. Claims submitted with RFR Form should be sent to TASC:a. By Fax: b. Or by Mail: TASC PO BOX 7308 Madison, WI 53707-7308

Service TypeCode**

/ / .

/ / .

/ / .

ReceiptAttached

WRITE LEGIBLY AND DO NOT HIGHLIGHT AMOUNTS ON YOUR RECEIPTALL BOXES AND FIELDS MUST BE COMPLETEDSUBMIT A COPY OF YOUR RECEIPT ALONG WITH THIS RFR ONLY FOUR LINES PER FORM WILL BE PROCESSED

18951

18951

If updates were sent previously, please use your new updated RFR form

Participant TASC Id

608-663-2762


When will my Participants receive their cards?

TASC Cards will be issued to Participants 10 days

following the completion of the FlexSystem enroll-

ment. This delay in no way affects a Participants

ability to access their FlexSystem funds. Partici-

pants can submit a Request for Reimbursement (via

MyTASC Mobile, the Request for Reimbursement

Wizard in MyTASC, fax to 1-608-663-2762, or mail) to

process claims prior to receiving their FlexSystem

TASC Card.

What if I do not elect the TASC Card for my benefits Plan?

If you do not elect the TASC Card for your benefits

Plan and your Participant does not elect direct

deposit for their reimbursements, they will receive

a special TASC Card with exclusive MyCash access.

The card serves as a reimbursement card only. It will

not have access to benefits funds. Reimbursements

for eligible benefits expenses will be deposited into

their MyCash account. They can access their MyCash

funds with the swipe of their TASC Card at any

merchant that accepts MasterCard or at an ATM (with

a PIN). Or they may visit their MyCash Manager in

MyTASC to set up a transfer.

How is the card issued?

The TASC Card will be mailed directly to the Par-

ticipant’s home address along with the Cardholder

Agreement.

A PIN is required if a Participant would like to access

their MyCash funds via an ATM using their TASC

Card. A PIN can be obtained online: login to MyTASC

(www.tasconline.com), click TASC Card Manage-

ment, then Request ATM PIN on the right side of the

screen.

A Participant may request one card for a dependent

at no charge. (A $10 fee is charged for additional

cards.) To request a dependent card, login to My-

TASC, click TASC Card Management, Issue Depen-

dent Card (bottom of the screen), and complete the

required information.

How can a lost/stolen card be replaced?

Participants must notify FlexSystem immediately to

report a lost or stolen TASC Card. To do so, (a) login to

MyTASC (www.tasconline.com) and click TASC Card

Management, Reissue Card, and select Lost/Stolen as

the reason for reissue; or (b) submit an online MySer-

vice Request (from MyTASC, click Contact Us); or (c)

call Customer Care at 608-241-1900 or 800-422-4661.

A new card will be issued within 7-15 days and a $10

reissue fee will be automatically withdrawn from

their FlexSystem account (pre-tax).

How do I add a new employee and notify FlexSystem when an employee terminates?

Following successful enrollment, new Participants

in FlexSystem will be automatically issued a TASC

Card. The Participant’s TASC Card remains active

until you notify FlexSystem of the Participant’s

termination or cancel the Plan. Upon notifica-

tion of termination or on the effective date of a

Plan cancellation, the MyBenefits account will be

automatically deactivated. Once the card has been

deactivated, a Participant can access available

benefits funds by requesting reimbursement using

one of the alternative Request for Reimbursement

submission methods (fax, mail, or online).

The MyCash account is handled differently. While

the MyBenefits account is deactivated upon termi-

nation, the MyCash account stays available until

all funds are depleted. Even when your employee

benefits Plan Grace Period has expired, the Partici-

pant may continue to access their MyCash funds

via their TASC Card indefinitely. To do so, the Par-

ticipant must simply cover a monthly $5 account

maintenance fee. To close the MyCash account, the

Participant should spend, transfer, or withdraw

their funds within 90 days of termination.

Where do I go with additional questions?

Visit our TASC Card website (www.tasconline.com/

tasccard) for more information, helpful videos, and

answers to frequently asked questions, or contact

Customer Care at 608-241-1900 or 800-422-4661.


Reimbursement Requests

When a Participant incurs an eligible FlexSystem

expense, he/she should simply swipe his/her TASC

Card. The TASC Card automatically pays for and

substantiates most eligible expenses at the point-of-

purchase, eliminating the need to submit reimburse-

ment requests.

On the rare occasion that a Participant pays for an

eligible expense without his/her TASC Card, he/she

may submit a Request for Reimbursement along

with substantiation via the Request for Reimburse-

ment Wizard in MyTASC or the MyTASC Mobile App,

via text, or by mailing or faxing a personalized paper

request form.

FlexSystem processes reimbursements daily. Reim-

bursement payments are initiated within 48 to 72

hours of receipt of a complete and accurate reim-

bursement request.

Request for Reimbursement Wizard

• ParticipantsshouldlogintoMyTASC(www.

tasconline.com using their username (or

12-digit TASC ID) and password. Once on the

Participant Manager home page, click on the

Request for Reimbursement Wizard on the left

side of the screen.

• EntertheServiceTypefromthedropdown

menu offered.

• EnterServiceDate:themonth,day,andyear

the service was incurred, not the billing or paid

date. These dates must be within the current

Plan Year.

• EnteraServiceDescription:prescription,office

visit, contacts, etc.

• EntertheServiceProvidername:e.g.,Dr.Smith,

Corner Pharmacy, Kid Keepers Daycare, etc.

• EnterAmountPaid,makingsurenottousethe

dollar sign or commas and using a period to

indicate any decimals.

• UnderUploadReceipts,clickChooseFileto

locate a scan of your receipt, then click Attach

File. Participants may upload a file (up to 5 MB)

in a JPG, PNG, TIFF, or PDF format.

• Intherightcolumn,checktheagreementbox

next to the disclaimer and click Submit.

• Arecordoftherequest(s)submittedinthis

session will appear at the bottom of the page.

• ParticipantsmayalsoUploadReceiptsfor

previously submitted claims that are missing

substantiation. To do so, Participants should

login to their MyTASC account, click Account

Management, then click the Reimbursements

tab. Under Submitted RFRs, click Upload Receipt.

MyTASC Mobile

• DownloadthefreeMyTASCMobileappfor

Apple and Android mobile devices.

• FollowtheeasystepstosubmitaRequestfor

Reimbursement with substantiation, all from a

mobile device.

Mail or Fax

• ParticipantsshouldlogintotheirParticipant

Manager in MyTASC to download a personal-

ized Request for Reimbursement Form. (Non-

conforming reimbursement forms will be

rejected.)Completeandsubmitthepaperform

with substantiation as instructed on the form.


IRS Regulations

When a medical reimbursement or card transaction

cannot be substantiated and remains unsubstanti-

ated, regulations state that employers may take the

following corrective actions:

1. Request that the Participant submit an eligible

request substitution to offset the ineligible pay-

ment. The request substitution must be for an

eligible expense under the Plan not previously

reimbursed by any other Plan.

2. Request that the Participant reimburse the Plan

via a check in an amount equal to the ineligible

payment.

3. Withhold the improper payment from the Par-

ticipant’s wages or other compensation to the

extent consistent with applicable law. (State

wage withholding laws apply. Check your state

laws to prevent any violation of your state regu-

lations.)

Off-Set Balance

The Off-Set Balance calculation compares total paid

unsubstantiated reimbursement requests to total

unpaid substantiated requests. If the paid unsub-

stantiated requests exceed the unpaid substantiated

requests at the end of the Plan Year, you will need

to begin the Off-Set Balance correction procedure. If

there is no Off-Set Balance, no correction is nec-

essary. The Off-Set Balance calculation may not

directly tie dollar-for-dollar to a specific Request for

Reimbursement.

This balance will be calculated and available at

any time throughout the Plan Year by visiting the

Balances and Exposures area of the Client Manager

in MyTASC (www.tasconline.com) or by contacting

FlexSystem Customer Care: Submit a MyService

Request (from MyTASC, click Contact Us) or call 608-

241-1900 or toll-free at 800-422-4661.

Off-Set Balance Corrective Procedure


Use-It-or-Lose-It Rule: Carryover

A period of no more than three months following the

end of the Plan Year is considered the transitional

period. During this time, the Participant may

continue to submit Requests for Reimbursement

for expenses incurred during the previous Plan Year

or during any elected Grace Period. The Plan Year

officially closes three months following the end of

the Plan Year (or elected Grace Period), or sooner if

directed by the employer.

At the end of the Plan Year, you may allow a

Carryover (up to $500) during which Participants

may carry over a portion of their unused medical

FSA balance to the next Plan Year. While the

maximum Carryover allowed is $500, you may

choose a lessor amount or no Carryover. Any

unused medical FSA funds (exceeding the Carryover

maximum) are forfeited to you, the employer. During

the Runout period, Participants in past and current

Plan Years may request reimbursements from both

respective Plan Years. The correct service date must

be entered to ensure accurate reimbursements.

Because the Carryover accords Participants a

$500 safety net, it’s strong motivation for them

to contribute at least $500 or increase annual

election amounts. FlexSystem administration takes

precautions to avoid Flexible Spending Account

balances at the end of a Plan Year, and provides

tools to make it easy for Participants to stay up-to-

date regarding their account balances. These tools

include the MyTASC website, MyTASC Mobile App,

and the FlexSystem Interactive Voice Response

System (608-241-1900 or 800-422-4661).

Carryover or Grace Period

At the Plan Year end, medical FSAs permit a

Carryover (up to $500) or a Grace Period. You must

choose one or the other or neither for your Plan.

Even though you are not allowed to have a Carryover

and a Grace Period for the medical FSA, you may

have a Grace Period for your other benefits and a

Carryover for the medical FSA.

Carryover occurs after the Runout Period end date.

Participants with unused medical funds may carry

over up to $500 to the next Plan Year. The employer

sets the carryover amount, which may not exceed

$500, during Plan set-up. Any unused medical FSA

funds (exceeding the Carryover maximum) are

forfeited to the employer.

During the Grace Period, Participants may continue

to incur and submit eligible expenses against the

just-endedPlanYear.WhilethemaximumGrace

Period is two months and 15 days, you may choose

a shorter Grace Period to better suit your business.

Your current Runout period will remain the same,

and will begin immediately following the last day of

the Grace Period. To help your Participants maximize

this benefit, FlexSystem will reimburse requests

based on the date of service, spending down fund

balances in the previous Plan Year first, and then

turning to funds available in the current Plan Year.

At the end of the Grace Period, FlexSystem will

reconcile all Requests for Reimbursement and make

anynecessaryadjustmentstoensurethattheFSA

fund balances are used to maximize the Participant’s

tax benefit. In addition, FlexSystem will split

Requests for Reimbursement, using funds from both

Plan Years when applicable.

Please be aware that because the accounts may

remain open past the end of the Plan Year, it is

important that you are mindful of possible impacts

to you: Participant counts may be affected, and as a

result may impact your fees. FlexSystem will invoice

for your Participants who remain in the Plan during

the Grace Period (an additional two months and

15 days). This fee reflects our need to manage and

administer your Participants’ accounts for the Grace

Period and the ensuing Runout period. Finally, we

note that these fees do not affect Clients with flat

fee invoicing or those billed annually. To switch to

annual invoicing, contact Customer Care.

Out of Pocket Medical Expenses

In addition to your health, dental, and term-

life and disability premiums for your employee

insurance, eligible expenses under your Plan

include medical out-of-pocket expenses paid for

the diagnosis, cure, mitigation, treatment or pre-

vention of disease, and/or for treatments affect-

ing any part or function of the body. For a partial

list of expenses that may be reimbursed through

FlexSystem, visit https://www.tasconline.com/

biz-resource-center/eligible-expenses/.


MyTASC Mobile

MyTASC Mobile App, Text, Email: Stay Connected Wherever You Go

The MyTASC Mobile App is a fast and accessible

account managment tool for FlexSystem Flexible

Spending Accounts! With MyTASC Mobile App, your

Participants are now able to securely access their

FlexSystem account balances from anywhere at any

time using their mobile device.

MyTASC Mobile App Features:• Submitarequestforreimbursementforout-of-

pocket FSA expenses.

• Upload pictures of receipts with phone camera.

• View real-time account balances and

transactions for active and closing plans and

MyCash account.

• Review FlexSystem Plan information and annual

contributions.

• Securely log in with MyTASC username and

password.

• Enable login memory for faster return access

(per device).

• Access a help screen for system assistance.

For more information on TASC Mobile or to

download the free MyTASC Mobile App, please

visit www.tasconline.com/mobile.

Text Messaging and Email NotificationTASC Mobile also offers text messaging (SMS) and

email notification. Participants may use these

mobile services daily to obtain account balances,

request reimbursements, and receive account status

alerts.

To sign up to receive email and text notifications

for FlexSystem accounts, Participants must log in to

their MyTASC account, click Profile, enter or update

their mobile phone number and email address, and

select Save. Then follow the instructions provided

to complete the verification process and set desired

notifications.

FSA Account Text Messaging Instructions

Account Balance Check Text TASC BAL to number 41411

Request for Reimbursement (RFR) Submission Text TASC RFR <Service Code> <Store> <$Amount> to 41411 Example: TASC RFR MD Walgreens $5

Service Codes MD-Medical RX-Prescription OT-Over the Counter MP-Medical Preventive DN-Dental VS-Vision DC-Dependent Care PK-Parking MT-Mass Transit IP-Individual Premiums

Text Notifications


Payroll Verification Report

A Payroll Verification Report (PVR) is available online

in MyTASC (at www.tasconline.com). This report

represents the pre-tax deductions for all FlexSystem

Participants. You will see the payroll date reflected

at the top-middle portion of the page. For each PVR,

you should verify names and deductions for accu-

racy. Make corrections and submit online any ter-

minations or change of elections. Also submit your

payment online in MyTASC.

If you need to pay your PVR with a check, please

ensure that your remittance reconciles with the

finaladjustedtotalshownonthePayrollReport.Any

discrepancies may cause delays in processing which

in turn may cause delays in reimbursements. Some

key items to keep in mind when working with the

paper PVR:

• AlwaysincludeacopyofthePVR.You

may print the PVR from your online

account.

• Donotincludeadministrativefeeswith

the PVR.

• RemitonlyonecheckperPVR.

Change in Elections During Plan Year

Each Plan Year anniversary provides an opportunity

to change elections when re-enrolling for the next

Plan Year. Otherwise, only under certain circum-

stances may Participants change their elections

mid-Plan Year. To communicate changes in elec-

tions to FlexSystem, you must use the online PVR at

MyTASC. To prepare for this step, review the Change

of Election Worksheet. (Download forms from www.

tasconline.com/flexsystem-documents.) The work-

sheet is for your records and use only, and includes a

list of acceptable events that will allow a Participant

to make a change to their annual elections. Dupli-

cate, complete, and retain this worksheet for your

records; update the Participant’s account informa-

tion by logging into your MyTASC account at www.

tasconline.com and enter the changes as described

below.

To make changes online follow these steps:1. On the Payroll Verification Report, locate

the Participant with elections that you seek

to change, then click on Account.

2. This will bring you to the Participant Account

Management area.

a. Changing an Annual Election – select the

Contributions tab, select the Change link

for the benefit and the effective payroll

date.Deselecttheautoadjustoptiononthe

bottom left of the page. Enter the new

contribution amount and select the Next

button. A pop-up window will ask if you

want to change the annual amount. Click

on the OK button, select the appropriate

qualifying event and click on the Save

button.Ifyouleavetheautoadjustoption

selected, the new amount will be spread out

over the remaining payroll dates.

b. Changing Payroll Contributions – on the

Contributions tab, locate the payroll date

that you need to change and click on

Change. You have two options: (1) If

you are making a change to a per-payroll


amount and want to distribute the dif-

ference across the remaining payrolls with-

out changing the annual, simply enter the

reviseddollaramount(AutoAdjustoption

should remain selected).

(2) If you want to change a single per-pay

amount,firstuncheckAutoAdjustoption

located on the bottom left of the Contribu-

tions tab.

c. Terminating Participants – select the

Terminate tab. Choose the applicable

Termination type option, enter the last

payroll date and Plan eligibility end date,

and then click Terminate Participation.

Termination of Employment

Please use the PVR to promptly report all employee

terminations to FlexSystem. As mentioned earlier,

a Participant’s TASC Card is frozen immediately

upon the termination of their employment, while

they may continue to submit Requests for Reim-

bursement through the end of the Plan Year. Be sure

to inform the Participant of any unsubstanti ated

Requests for Reimbursement, and instruct them to

immediately send the required supporting docu-

mentation to FlexSystem. If the Participant fails to

follow these steps, you may withhold the amount

of any unsubstantiated pay ment from the Partici-

pant’s wages and/or from other compensation they

normally receive. (Be sure to check your state’s rules

regarding withholding compensation before utiliz-

ing this option.) Once again, to communicate these

changes to FlexSystem, use the online PVR Manage-

ment page (in MyTASC). For more information, refer

to the Termination of Employment instructions

included in the Client Forms of this Manual. Flex-

System determines your administrative fees to cover

your terminated Participants; they must remain

on your Participant count through the end of the

Runout period.

Adding Employees

To add a new employee, go to Enrollment Manage-

ment and select the Plan. Click on Enroll Participant;

enter their demographic information including their

email address. (A valid email address is required

for employees to access their account online and to

receive benefit related emails such as their Welcome

Packet and notifications for claim received, denied,

and paid, etc.) Click on Next; enter their benefit

elections and effective eligibility date. That’s it! The

employee will become the Participant at time of the

first payroll that occurs after their eligibility start

date.


CHIPRA Model Notice Requirement for some Health FSAs

The Department of Labor (DOL) issued the Model

Notice to Employees under the Children’s Health

Insurance Program Reauthorization Act (CHIPRA) on

February 4, 2010. This Notice describes the relevant

CHIPRA provisions and lists contact information for

states in which CHIP or Medicaid programs offer pre-

mium assistance, as the CHIPRA law authorizes. The

CHIPRA Model Notice must be distributed to employ-

ees who reside in a state that offers CHIP premium

assistance and are eligible for the employer’s group

health plan.

For health Flexible Spending Accounts (FSAs), only

employers with health FSAs that are not “excepted”

benefits must provide the CHIPRA Model Notice

to their employees. Since most health FSAs are

excepted benefits, the Notice will not be required for

themajorityofFSAplans.

Do either of the following two conditions apply

to your health FSA? If so, then your health FSA is

not an excepted benefit and you must provide the

CHIPRA Notice to your employees.

• YourhealthFSAprovidesemployercontri-

butions, and either

o the annual maximum benefit amount

available to the employee exceeds two

times the employee’s yearly contribu-

tion amount; or

o the annual maximum benefit amount

available to the employee exceeds the

employee’s yearly contribution plus

$500.

• Othernon-exceptedgrouphealthplancover-

age,suchasmajormedicalcoverage,isnot

available during the year.

Please note: if you have already provided the CHIPRA

Notice to all of your employees, you need not pro-

vide another notification for your health FSA until

the start of your next Plan Year.

The Model Notice:

• mustbeprovidedtoallemployees(those

who are enrolled in the employer’s health

Plan and those who are not);

• mustbeprovidedfreeofcharge;

• mustbeprovidedeachyear;

• maybedistributedwithenrollmentpackets

or with open enrollment materials, but

must appear as a separate document;

• mustbepresentedinamannerwhichen-

sures an employee who may be eligible for

premium assistance will likely appreciate

its significance;

• maybeprovidedbyfirst-classmailorelec-

tronically (must satisfy the Department’s

electronic disclosure safe harbor at 29 CFR

2520.104b-1(c)).

Employers who fail to comply with the disclosure

requirementsmaybesubjecttopenaltiesofupto

$100 per day.

Any employer providing benefits (directly or through

insurance, reimbursement, or otherwise) for medi-

cal care in a State is considered to be maintaining a

group health plan in the State.

If said State provides Medical Assistance, the em-

ployer must provide the Model Notice, regardless of

the employer’s location or principal place of busi-

ness (or the principle place of business of the group

health plan, its administrator, its insurer, or any

other service provider affiliated with the employer or

the Plan).

For a copy of the Model Notice and to find out which

states currently offer premium assistance under

Medicaid or CHIP, go to: http://www.dol.gov/ebsa/

chipmodelnotice.doc.


When an Employer chooses to use the Claim Con-

neX service, they submit the completed Claim

ConneX Addendum to the Group Plan Application

to TASC. (Download forms from www.tasconline.

com/flexsystem-documents.) We then begin work-

ing with the designated Carriers to establish the

workflow.

Once Claim ConneX is established for a FlexSys-

tem and/or DirectPay Plan, TASC begins to receive

claims automatically from the insurance carrier on

behalf of the Participant.

Add Value to Your Benefits Program!

Employers who enroll in this technology receive

faster administrative service and increase the

value of their employee benefits program.

Service will be faster and more efficient. Plan Par-

ticipants no longer need to submit a Request for

Reimbursement and provide claim substantiation.

With Claim ConneX, the entire process is automat-

ed and turnaround time is greatly reduced!

Employee confusion will be alleviated. Greater

coordination and integration between health insur-

ance carriers and the reimbursement Plan will

mean fewer questions about “when and how” to

submit claims, or whether a claim is in process.

Paperworkwillbereduced!Thisisjustonemore

example of how TASC is going green. And with less

paperwork, quality will increase and privacy of per-

sonal health information will be further protected.

*Please note, in some cases TASC may need to

obtain a carrier-specific authorization form. In ad-

dition, while most carriers will perform electronic

claim feeds for benefit accounts (i.e. FSA, HRA,

HSA, etc.), certain carriers may not be equipped

to do so; Claim ConneX is not available for those

carriers at present. In either case, TASC will contact

you.

Employer Features • Faster,efficientservice!

• Nocosttoutilize.

• Reducesmanuallyfiledclaims.

• Maximizesemployeebenefitprogram.

• SavestimewithCarrierfilefeeds.

• Savestimewithmassclaimsprocessing.

• Worksforbusinessesofallsizes.

Participant Features • NoneedtosubmitaRequestforReim-

bursement (RFR).

• Noneedtosubmitsubstantiation(keep

receipts for personal records).

• Eliminatesriskoffaxtransmissionerror.

• Quickerreimbursementturnaroundfrom

TASC.

For enrollment information, please visit www.

tasconline.com/claimconnex/.

Claim ConneX


Qualified Reservist Distribution

The Heroes Assistance and Tax Relief Act of 2008

allows for distributions of unused amounts in a

health Flexible Spending Account (FSA) to reservists,

through a Qualified Reservist Distribution (QRD). In

general, the QRD is a distribution to an individual

of all or a portion of the balance in the employee’s

health FSA, and is acceptable if:

1. The individual is a member of a reserve

component ordered or called to active duty

for a period of 180 days or more, or for an

indefinite period; and,

2. The request for distribution is made within

the period beginning with the order or call

to active duty and ending on the last day of

the Plan Year (or Grace Period).

While employers are not required to offer the distri-

bution, they must apply the amendment uniformly

to all Plan Participants (employees). Before the

distribution can occur, the employer must receive a

copy of the order or call to active duty. Multiple calls

or orders that increase the total period of active duty

to 180 days or more will qualify an employee for a

QRD. Example: If an employee is ordered or called to

active duty for 120 days, and her/his order or call is

subsequently extended to an additional 60 days, that

individual qualifies for a QRD. The distribution must

be paid within a reasonable time frame, but no later

than 60 days following the date of the order or call.

The distribution must be included in the employee’s

wages/incomeandissubjecttoemploymenttaxes.

Finally, the employer must report the QRD as wages

on the employee’s Form w-2 for the year in which

the QRD is paid to the employee.

This is how the distribution will be handled under

FlexSystem:

• Thedistributionwilloccurwithin60days

from the time of the call/order. The distri-

bution amount will be the amount con-

tributed to the health FSA as of the date of

the QRD request minus health FSA

reimbursements received as of the date of

the QRD request.

• Theemployerwillneedtodetermineifthey

request is a qualified request based on the

information above.

• Inordertoprocessthedistribution,aDistri-

bution Form will need to be completed and

submitted to TASC. (Download forms from

www.tasconline.com/flexsystem-

documents.)

• UponreceiptoftheForm,TASCwilltermi-

nate the employee and initiate the distribu-

tion.

• Claimsmaybesubmitteduntilthedateof

employee is terminated in MyTASC.

• Theemployerwillberesponsibleforreturn-

ing the distribution to the employee within

the specific time frame and will need to ac-

count for the employment taxes in the ap-

propriate manner as outlined above.


Non-Discrimination Testing/IRS Form 5500 /Plan Finalization

Non-Discrimination Testing

Section 125 of the Internal Revenue Code requires

that Cafeteria Plans benefits be offered to employees

on a nondiscriminatory basis. To ensure compliance,

the Internal Revenue Code sets forth testing require-

ments that must be satisfied.

FlexSystem will provide nondiscrimination testing

for your Plan on an annual basis. A testing request

with instructions on how to complete the testing

as well as the data worksheet will be sent to you.

Once received, please submit this information to

TASC within 30 days so testing can be performed in

a timely manner.

IRS Form 5500

Employers that have 100 or more Participants in the

Medical Flexible Spending Account (FSA) at the be-

ginning of any given Plan Year must file a Form 5500

after the close of that Plan Year. Compliance is the

employer’s responsibility and failure to file an an-

nual return can result in penalties. Form 5500 must

be filed by the last day of the seventh month after

the Plan Year ends. If needed, a one-time extension

may be requested by filing IRS Form 5558 by the date

of the original filing deadline.

We realize that you may be filing for your Medical

FSA as part of a consolidated Form 5500 which cov-

ers multiple benefits. However, if you are filing for

the Medical FSA separately and would like TASC to

prepare a separate Form 5500, go to www.tascon-

line.com/5500/ and complete the 5500 Data Request

Form and submit it to TASC. Upon completion of

your Data Request Form, TASC will prepare the Form

5500 and Summary Annual Report (SAR). It is the

employer’s responsibility to sign and submit the

Form 5500 electronically. Once TASC has prepared

the Forms, an email will be sent to you with instruc-

tions on how to electronically sign and submit your

Form 5500.

If TASC does not receive your completed Data Re-

quest Form, it is assumed that you do not wish to

utilize this service.

Plan Finalization

Within 67 days after your Plan’s Runout End Date

has been reached, TASC completes the final review

of the Plan and the Plan status changes to Finalized.

At this time, an email is sent to the Primary Contact

indicating the final balance of the Plan.

Plans with a negative balance will have an invoice

generated.

Positive balances will be moved to the Client Cash

Account and used to pay your next Payroll Verifica-

tion Report (PVR). You may request the amount to be

refunded to you in place of applying the amount to

the next PVR. If so, be sure to watch for the Finaliza-

tion email and request the refund before it is applied

to your next PVR.


A Section 125 Cafeteria Plan allows for the inclu-

sion of Dependent Care (Section 129 of the Internal

Revenue Code) benefits. Eligibility for the dependent

care benefit requires that certain criteria be met

with respect to the expense, the provider, etc.

A. The dependent care expenses must be

work related. The care must be necessary

for the employee and the employee’s

spouse to work, to look for work, or to

attend school full-time, or if they are

physically unable to care for their children.

B. The dependent care expenses provided

during a calendar year cannot exceed

$5,000. In the case of a separate return by a

married individual, the limit is $2,500. This

amount may be less if the employee’s

earned income or spouse’s earned income

is less than $5,000.

The dependent care expenses must be for the care of one or more qualifying persons. A qualifying person is one of the following:

A. A dependent who was under age 13 when

the care was provided and for whom an

exemption can be claimed.

B. A spouse who was physically or mentally

not able to care for himself or herself, and

lived with you for more than half the year.

C. A dependent who was physically or men-

tally not able to care for himself or herself

and for whom an exemption can be

claimed, and lived with you for more than

half the year.

To receive the dependent care benefit, one must follow these procedures:

A. All persons and organizations that provide

dependent care for a qualified person must

be identified. This information is requested

on Form 2441. The name, address, and tax

payer identification number of the provider

must be included. Under certain circum-

stances the taxpayer identification number

will be a social security number.

B. If the care is being provided by a center that

cares for more than six persons, the center

must comply with all state and local regula-

tions.

C. Payments made to relatives who are not de-

pendents can be included. However, do not

include amounts paid to a dependent for

whom you can claim an exemption or for

your child who is under age 19 at the end

of the year, regardless of whether he or she

is your dependent.

D. Use Form W-10 to request the required

information from the care provider.

Special rules apply to children of divorced or separated parents:

Even if you cannot claim your child as a dependent,

he or she is treated as your qualifying person if all of

the following are true:

• Thechildwasunderage13orwasnot

physically or mentally able to care for him-

self or herself

• Oneorbothparentsprovidedmorethan

half of the child’s support for the year and

are divorced, legally separated, or lived

apart at all times during the last 6 months

of the calendar year.

• Oneorbothparentshadcustodyofthe

child for more than half of the year

• Youwerethechild’scustodialparent.The

custodial parent is the parent having cus-

tody for the greater portion of the calen-

dar year. If the child was with both parents

for an equal number of nights, the parent

withthehigheradjustedgrossincomeis

the custodial parent.

NOTE: A non-custodial parent that is entitled to

claim the child as a dependent on their tax

return may not treat the child as a qualifying

individual for the dependent care benefit even

when that parent is financially responsible for

providing the care. Only one parent (the custo-

dial parent) may qualify for the dependent care

benefit for a taxable year. The regulations do not

Dependent Care Qualifications


provide any relief for a non-custodial parent

that incurs dependent care expenses for the

portion of the year in which they have custody

of the child to enable the non-custodial parent

to work.

Eligible and Ineligible Expenses for FSA Dependent Care (partial list):

Eligible Expenses (must be employment related) • FICA/FUTAtaxesofdependentcare

provider

• Nannyexpensesattributedtodependent

care

• Nurseryschool(preschool)

• Latepickupfees

• DayCamp–primarypurposemustbe

custodial care and not educational in

nature

• Daycarewhenoneparentisworkingand

the other is sleeping during daytime hours

Ineligible Expenses • Kindergarten

• Activityfees/supplies

• Latepaymentcharges

• Overnightcamp

• Transportation

• Feespaidtoaprovidernotreportingthe

income to the IRS

For more information regarding dependent care ex-

penses, please review IRS Publication 503.

What is “Confidentially Speaking”?

The Confidentially Speaking program guar-

antees that TASC employees, customers, and

vendors can safely and anonymously commu-

nicate with management regarding sensitive

information. We respect and value your opin-

ions, and hope you will feel comfortable using

this program to communicate serious problems

or concerns.

Confidentially Speaking is administered by

Global Compliance, an independent organization

that is contractually forbidden to disclose your

personal information to TASC (unless you give

them permission).

How does it work?

If you have knowledge about the occurrence of

unethical activity, promptly report the situation

to a Confidentially Speaking representative via

our website at www.tascconfidentiallyspeaking.

com or via phone at 877-874-8416.

Learn more! View the Confidentially Speaking

Reporting Program flyer. (Download from

www.tasconline.com/flexsystem-documents.)


Dependent Care FSA vs. Dependent Care Credit

Individuals who incur dependent care costs have

two choices for saving taxes on these costs. One op-

tion is to utilize the income tax credit that is avail-

able from the federal government (IRS Form 2441).

The other option is available only to individuals who

are participating in a Cafeteria Plan sponsored by

their employer. Finally, both options are available for

many individuals, who must choose the option that

provides the most savings.

Many factors must be considered by the individual

and/or their family when determining the best op-

tion. As a general rule, under a Cafeteria Plan the

employee will save approximately 27.65 percent of

each dollar that is run through the Plan. This per-

centage is an average based on an employee with in-

come in the lowest tax bracket; therefore the savings

may be larger for an employee with higher earnings.

Meanwhile, the savings realized by the dependent

care credit will vary and again will depend on the

family’s total income. The chart at right helps to es-

timate the amount of this credit; the credit column

represents the multiplier. For example, if income is

between 25,000 and 27,000, you will save 29 percent

of each dollar that you spend on qualified dependent

care expenses.

Any true and thorough comparison of the two

options should consider expense limitations. To

elaborate, the dependent care benefit under a Caf-

eteria Plan may not exceed $5,000, regardless of the

number of children. In sum: $5,000 is the maximum,

whether for one child or more. In contrast, the in-

come tax credit is $3,000 for one child or $6,000 for

two or more children (not to exceed $6,000).

The above options make it clear that the difference

between these two plans is most vital to families

with one or two children. Let us consider… While

a family with one child may merit a maximum of

$5,000 through a Cafeteria Plan, the equivalent max-

imum possible with the income tax credit is $3,000.

For families with two or more children, the corre-

sponding numbers are $5,000 maximum (cafeteria)

and $6,000 maximum (tax credit).

The next step is to consider the amount of income

in order to estimate their savings. For the Cafeteria

Plan, the minimum savings will be 27.65 percent of

each dollar. This amount may be greater for employ-

ees in a higher income tax bracket. For the credit,

the percentage of savings is based on the combined

incomeofbothspousesiftheyfileajointreturn.For

example, in looking at the illustrative chart, a hus-

bandandwifewhojointlyearn$40,000willsave22

percent of each dollar through the tax credit. Under

a Cafeteria Plan, this family would instead save 27.65

percent of each dollar. It is important to note here

thatanemployeeandspousewithajointincomeof

$30,000 or less and only one child will likely realize

a greater savings by taking advantage of the credit.

(For the credit, the less the income, the greater the

savings).

One final item to consider concerns the actual time

it takes to realize the savings. By participating in the

dependent care benefit under a Cafeteria Plan, the

savings will be realized immediately. Conversely, the

savings by taking the dependent care tax credit is

realized only when the employee files their yearly

tax return.

Child and Dependent Care Credit Table*

INCOME CREDIT INCOME CREDIT0-15,000 .35 29,000-31,000 .27

15,000-17,000 .34 31,000-33,000 .26

17,000-19,000 .33 33,000-35,000 .25

19,000-21,000 .32 35,000-37,000 .24

21,000-23,000 .31 37,000-39,000 .23

23,000-25,000 .30 39,000-41,000 .22

25,000-27,000 .29 41,000-43,000 .21

27,000-29,000 .28 43,000-no limit .20

*Indexed


Non-Employer Sponsored Premium

We most often see employees pre-tax their insur-

ance premiums that are sponsored by their em-

ployers through the Cafeteria Plan. However, the

Cafeteria Plan does allow employees to include and

fund for insurance premiums that are not employer

sponsored, but rather individually purchased by the

employee on their own. These individual insur-

ance premiums can only be reimbursed through a

separate Non-Employer Sponsored Premium Reim-

bursement plan. Reimbursement through a Medical

Out-of-Pocket FSA is not allowed.

Participant elections are irrevocable for the Plan Year

unless there is a qualifying event. Changes made to

the election mid-Plan Year must also be consistent

with the qualifying event.

Eligible Premiums

Individually purchased health insurance for the

employee, spouse, or dependent.

COBRA premiums (these are not considered “em-

ployer sponsored” and therefore are eligible).

Health insurance that may be deducted from retire-

ment benefits that are provided through a previous

employer.

Individually purchased disability insurance. (Ben-

efits received are taxable when premiums are paid

pre-tax.)

Individually purchased dreaded disease insurance

(e.g. cancer or stroke; must not contain a premium

refund feature).

Medicare supplement premiums*

Medicare Part B or D*

Ineligible Premiums

Policies that defer compensation (e.g. cancer and

hospital indemnity policies with a premium refund

feature).

Any product which is advertised, marketed or

offered as long-term care insurance.

Health Insurance coverage provided by another

employer. (Spouse or dependent’s insurance premi-

um through their employer would not be allowed.)

Individual life insurance policies.

Premiums for Plans purchased through the Market-

place (federal or state exchange programs).


Transportation Fringe Benefits

Section 132 of the Internal Revenue Code allows for

qualified transportation benefits to be paid on a pre-

tax basis. Qualified transportation costs that may be

included in this benefit include payments for transit

passes, payments for transportation in a commuter

highway vehicle, and certain qualified parking costs.

All qualified costs are paid through salary reduction

and as such escape federal, social security, and state

income tax. The concept mirrors that of a Cafeteria

Plan. TASC offers this benefit as part of our overall

third party administrative services.

Eligible Expenses Under the Transportation Fringe Benefit

• Atransitpass:thisisanypass,token,fare-

card, voucher, or similar item that entitles

a person to transportation on mass transit

facilities which include (but are not limited

to) transport by rail, bus, train, or ferry.

• Transportonacommuterhighwayvehicle:

the vehicle must have a seating capacity of

at least six adults and at least 80 percent of

the mileage must be for purposes of trans-

porting the employee between their resi-

dence and their place of employment.

• Qualifiedparking:thisincludescostspaid

for parking on or near the employer’s busi-

ness premises or at a location from which

the employee commutes to work by mass

transit facilities, commuter highway ve-

hicle, or carpool.

• Someexamplesofcoststhatdonotmeet

the qualified transportation definition

include gas, insurance, tolls, etc.

The Transportation Fringe Benefit

All related costs may be paid through salary re-

duction, which benefits employees as they escape

federal and state income tax, in addition to Social

Security and Medicare taxes. Depending on the type

of transportation expenses, the benefit may operate

similarly to the Dependent Care FSA or the Indi-

vidual Premium Reimbursement component of a

Cafeteria Plan.

• Ifparkingisinanemployer-providedfacil-

ity, the employer may deduct the cost of

parking on a pre-tax basis. As such, this

deductionwillbeapayrolladjustment,

treated much the way group-sponsored

health insurance is handled under Section

125.

• Ifvouchersarereadilyavailablefordirect

distribution by the employer, cash reim-

bursements are not permissable. However,

these vouchers may be purchased by the

employer for distribution and the amount

deducted from the employee’s paycheck.

• Underothercircumstances,areimburse-

ment account will need to be established.

Through salary reduction, funds will be de-

posited into the reimbursement account

and reimbursements will be cut immediate-

ly for the incurred expenses submitted by

participating employees.

• Monthlylimitsdoapply.ContactFlexSys-

tem Client Services for current limits.

Change in Elections

Changes may be made to these elections each

month, as the amounts paid each month may fluctu-

ate.

Reimbursement Procedure

Administration and operation of the transportation

benefit is simple. If you offer this benefit, Partici-

pants must make an election via an enrollment

form and must keep in mind the monthly limits

mentioned earlier. Any fund balances remaining at

the end of the Plan Year will be forfeited unless you

choose to carry these funds forward to the follow-

ing Plan Year for use by the employee. Funds will be

acceptedasaspecialadjustmentthroughthePayroll

Verification Report Management only (in MyTASC).

Enter the transportation costs on the line assigned

for transportation benefits within the Request for

Reimbursement process.


Health Savings Accounts

Health Savings Accounts (HSA) are an excellent way

to help fund medical expenses. The tax-favored

treatment of HSAs was established under 2003

Medicare legislation. The law authorizes individu-

als and employers alike to use a tax-advantage HSA

inconjunctionwithhigh-deductiblehealthinsur-

ance plans. Individuals who establish HSA to pay for

qualified medical expenses deposit funds into the

account tax-free via salary reductions. The funds are

held in a custodial account until a qualified medical

expense is incurred, at which time reimbursement

funds may be withdrawn from the account. At the

end of the Plan Year, unused balances are retained in

the account and may be carried over to subsequent

Plan Years. In addition, funds in the account belong

to the individual and are portable from employer to

employer. (This portability is in effect regardless of

who contributes to the fund.)

Eligibility

The Participant must first have a qualifying High

Deductible Health Plan in order to be eligible for an

HSA, and must not be covered by another health

insurance plan (other than a plan providing certain

limited types of coverage, such as accident or sched-

uled benefit plans).

High Deductible Health Plan

A High Deductible Health Plan is a health plan with

a set annual deductible for individuals and for fami-

lies. (Contact FlexSystem Customer Care for the cur-

rent limits.) Out-of-pocket expenses are limited un-

der the health insurance plan. All these limitations

aresubjecttoannualcostoflivingadjustments.

Tax Deductions

Contributions to HSAs are limited. The deduction

limit for individual and family coverage is set and

indexed annually. (Contact FlexSystem Customer

Care for the current limits.) In addition, Participants

age 55 or older may contribute an additional per

person amount.

Withdrawals

The money in the HSA accumulates on a tax-de-

ferred basis. While withdrawals for qualified medical

expenses are not taxable, withdrawals prior to age

65 that are made for reasons other than qualified

medicalexpensesaretaxableandalsosubjecttoa

20 percent penalty. Upon death, disability, or reach-

ing age 65, or upon Medicare eligibility, funds may be

withdrawn for non-medical reasons without penalty

butthedistributionswillbesubjecttoincometaxes.

Rollovers

Funds from a Medical Savings Account (MSA) may be

rolled over into HSAs on a tax-free basis.

Qualified Medical Expenses

A qualified medical expense includes costs incurred

for medical care that meet the requirements of Code

213(d), which are the same requirements for an eligi-

ble expense under a Medical Out-of-Pocket Expense

Flexible Spending Account but for a few exceptions.

For example, under the HSA, Qualified Long-Term

Care Insurance Premiums and COBRA Healthcare

Premiums are eligible.

Participant Responsibilities

Each individual Participant must make certain that

contributions to the HSA do not exceed the maxi-

mum limits. In addition, Participants must ensure

that their withdrawals are for qualified medial

expenses in order to meet tax deductibility require-

ments.

Note: HSA contributions under a Cafeteria Plan are

made pre-tax and are included in the Section 125

Non-discrimination tests.


FlexSystem Renewal

Your Participants must enroll in FlexSystem every

year, and you will receive a renewal email request-

ing that you update your Plan Benefit Elections and

Requirements. Respond to the notice to make any

changes to your Plan. Meanwhile, update your ad-

dress, phone number, fax number, and email address

as well. Simply log in to www.tasconline.com. then

click Profile to make demographic changes and/or

Plan Management to make Plan changes.

Just as with your initial enrollment into FlexSystem,

you may complete your re-enrollment online. Many

of the steps will be the same as those you used to

enroll. To start the re-enrollment process, you will

be sent links to these documents and forms elec-

tronically. (Or you may visit www.tasconline.com/

flexsystem-renewal.)

Employer Materials:

Make the Most of your FSA Program Flyer

Renewal Checklist

Employer Enrollment Guide

Employee Materials:

Advantages of a Flexible Spending Account

How to Enroll Online

TASC Mobile Tools

Eligible and Ineligible Expenses

Prescription Order Form

Orthodontia Worksheet & Instructions

The TASC Card

TASC Card: Frequently Asked Questions

MyCash Manager Guide

Re-enrollment and enrollment in FlexPlan are very

similar. You and your Participants should enroll by

following the steps detailed in the section titled

Getting Started in FlexSystem found in the begin-

ning of this Manual. A Renewal notification will be

sent with a link to the Renewal Packet.

Annual Renewal Fees

Annually, at renewal time, the FlexSystem Plan ad-

ministration fees (per Participant fee and/or annual

flat fee – whichever applies to you) are reviewed and

may be increased based on a three year average of

the Consumer Price Index (CPI). The CPI is calculated

by the U.S. Bureau of Labor Statistics (www.bls.gov).

Any fee increase that is applied enables us to invest

in enhancements to FlexSystem that improve ease,

efficiency, and customer satisfaction.


Purpose

TASC’s Invoicing Practices aim to foster a clear un-

derstanding by communicating expectations to all

Clients and Providers, ensuring compliance to TASC

Plans and services, creating consistency between all

of TASC’s divisions, and ensuring the continuation of

services.

Philosophy

To ensure that TASC operations continue to run

smoothly, various actions need to occur in a timely

manner, including the payment of TASC adminis-

trative fees. Paying in advance demonstrates that

the Plan is for the benefit of employees, provides

further evidence that the Plan has been established

on a pre-thought basis, and ensures coverage under

TASC’s Audit Guarantees. TASC invoices in advance

for two reasons:

1. TASC requires a commitment in advance of

the business being processed, and

2. TASC requires a payment history for its

Clients, so as to determine the Clients’

status of good standing.

Types of Payments

Check

• Clientsmaypaybycheck.

E-Pay

• Clientsmaypayadministrativefees

electronically as long as they use E-Pay, and

as long as these fees are debited seven days

prior to their service period start date.

Therefore, if a service period begins January

1, Clients will be debited on December 23.

ACH Credit

• Clientsmaypayadministrativefees,fund-

ing invoices or Payroll Verification Reports

via an electronic ACH Credit transfer. A

$40 per transaction service charge will be

assessed. Clients should contact their Pro-

vider for details.

ACH Debit

• Clientsmaypayadministrativefees,fund-

ing invoices, or Payroll Verification Reports

via an electronic ACH debit transfer.

Types of Invoices

Administration Fee

• Generatedannually,quarterly,ormonthly

for TASC Services that are provided during a

pre-determined service period.

FSA Fee (FlexSystem only)

• GeneratedwhenaPayrollVerificationRe-

port was paid short, or a takeover has oc-

curred.

Premium Services Fee

• ThisinvoiceisgeneratedwhenaClienthas

elected a Premium Service.

Forfeiture

• GeneratedannuallyforFSAfundsdue.

TASC Invoicing Practices


Standard Procedures (across all divisions)

Invoice

• Generatedandsent45dayspriortothe

Service Period start.

Due Date

• Willbe7daysfromthedatetheinvoicewas

generated.

Service Charge Date

• Anadditional$20feewillbeassessed60

days from the original Invoice Date if the

invoice is not paid by the service charge

due date, and the account will be placed on

hold. Exception: If DirectPay funding or

FlexSystem FSA invoices are not paid

within 21 days of Plan start, a notice will be

send to the Client; if the invoice is still un-

paid at 30 days, the account will be placed

on hold.

Statement

• AStatement(secondnotice)ofunpaidin-

voices will be mailed 15 days prior to the

start of the Service Period.

Past Due Email Notification

• OnthefirstdayoftheServicePeriodor

45 days after the original invoice date

(whichever comes first), an email will

be sent to any account with unpaid invoices

older than 40 days. This email will inform

the Client that the account will be put on

hold and that a $20 service fee will be

charged if the invoice is not paid within

60)days of the original invoice issue date.

Exception: FlexSystem FSA invoices will

receive notification of Past Due at 15 days

after the date of invoice.

Final Notice Statement

• AFinalNoticeStatement(thirdnotice)

will be mailed out 15 days into the

Service Period, with a Service Charge of

$20, a notice of default status, and a

notice that all account services have been

placed on hold.

Collections

• TheaccountwillbeplacedinCollections

45 days into the Service Period start, or 90

days after the original invoice date, which-

ever comes first.

Plan Termination

• Theaccountwillbeterminated104days

into the Service Period start. Letters will be

provided to each Client being terminated.

Fee Calculations

• Feesarecalculatedonthenumberof

known Participants at the time the invoice

is generated. Administration fees are either

the minimum fee or the number of Partici-

pants multiplied by the per Participant fee,

whichever is higher. If the number of

Participants is unknown, the minimum fee

will be charged.

Client Responsibilities

Mail invoices and payments in the envelope

provided (goldenrod color) to: TASC - Client

Invoices, PO Box 88278, Milwaukee, WI 53288-

0001.

• Allinvoicepaymentsmustbesubmitted

separately from all other payments and

transactions.

• Allinvoicepaymentsmustbemadesepa-

rately (i.e. one check with one invoice).

Notify TASC of any disputes or any changes.

Pay for all Participants (including terminated)

through the Grace Period and Runout period.

F X - 3 6 1 0 - 1 2 2 7 1 3

Total Administrative Services, Inc. www.tasconline.com2302 International Lane, Madison, WI 53704-3140

800.422.4661

COBRAToday COBRA Administration

DirectPay Health Reimbursement Arrangements (HRA)

FlexSystem Flexible Spending Accounts (FSA)

ERISAEdge ERISA Compliance

FMLAMatters FMLA Administration

PayPath Payroll Services

TASC Health Savings Accounts (HSA)

Client Administration Manual

Documents