Employees assigned to work 30 or more hours per week or the equivalent teaching load are eligible for participation in the flexible savings plan. The plan allows you to redirect a portion of your salary into two specific types of expenses: Dependent Care Expenses and Unreimbursed Medical Expenses. The specific dollar amount must be elected prior to the beginning of the year and is then divided equally by the number of salary payments during the calendar year. This is a pre-tax reduction and therefore, saves you the cost of Social Security (FICA, MEDE) and withholding taxes on this specific dollar amount for the year. The amount chosen is an irrevocable election unless there is a qualifying change in family status during the year. The money must be reimbursable for services rendered through the March 15 following the calendar year for which the pre-tax reduction was made. It is not refundable. It is, however, left with SAU for University operations. There is a fee of $2.50 per month for using Flex Dependent Care or Flex Unreimbursed Medical Expenses.
For 2024, employees can contribute $3,050 to health FSAs. The increase also applies to limited-purpose FSAs that are restricted to dental and vision care services, which can be used in tandem with health savings accounts (HSAs).
The dependent care FSA maximum is $5,000 a year. Married couples have a combined $5,000 limit, even if each has access to a separate dependent care FSA through his or her employer.