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What
is the Flexible Benefit Plan?
Section
125 of the Internal Revenue Code makes it possible for
employees to pay certain qualifying expenses without paying
taxes on them. These plans were created in 1978 and
many large corporations implemented them. Now, many
other employers are introducing Flexible Benefit Plans to
help employees save tax dollars.
What's
in it for you?
The
City's Flexible Benefit Plan allows you the opportunity to
utilize specific tax advantages when you pay for medical
and/or dental insurance premiums, dependent care expenses
paid by you or your spouse and also medical, dental, vision,
etc., type of out-of-pocket expenses. The following
are a few examples of the expenses the Flexible Benefit Plan
can help you with.
-
Child
care expenses due to employment if spouse is full-time
student
-
Eye
Examinations
-
Contact
Lenses, Solutions, and Enzyme Cleaners
-
Eyeglasses
-
Medical
Deductibles
-
Dental
Fees
(X-rays,
cleanings, exams,
crowns and implants)
-
Note:
This listing is a list of only a few general expenses.
If you have any questions or concerns, please contact
Human Resources at (920) 832-6458 or e-mail us at  .
If further
verification is needed regarding whether an expense
qualifies, please call the Diversified Benefit Services
office and they will research it with the IRS.
How
does it work?
When
you participate in the Flexible Benefit Plan, your gross
compensation remains the same. Your taxable income,
however, is reduced. That means you have more
spendable income by the end of the Flexible Benefit Plan
year. Please refer to the chart below for a visual
comparison.
|
|
Without
Flex Plan
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With
Flex Plan
|
|
Gross
Pay
(before
taxes)
Qualifying
Expenses
|
$1000
-0-
|
$1000
268
|
|
Pay
subject to tax
|
$1000
|
$732
|
|
Taxes
paid by you:
Federal,
State, FICA - approximately 30%
|
$291
|
$212
|
| |
$709
|
$520
|
|
I.
Daycare Expenses
II.
Medical Expenses
|
200
22
|
-0-
-0-
|
|
Net
Spendable Income
|
$487
|
$520
|
|
|
|
|
|
Increased
Spendable Income
|
|
+$33
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How
do I submit a request for a claim?
The
Printable Flexible Benefit Plan Claim Form can be obtained from the
Diversified Benefits Systems, Inc. website at www.dbsbenefits.com
(Plan Participants, Print Claim form, click the icon to download) or
click HERE
to download the form. You may also request a form from the
Human Resources Department by calling (920) 832-6458.
Plan
administered by:
Diversified
Benefit Services, INC.
P.O.
Box 810
Brookfield,
WI 53008-0810
www.dbsbenefits.com
Phone:
(262) 821-1700
(800) 234-1229
Fax:
(262) 821-1387
If
you have any questions or concerns please contact Human Resources at
(920) 832-5895 or e-mail us at
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