A plan, offered by the employer, under which employees may choose between cash or qualified benefits (see Flexible Benefit Plan).
Commuter Benefit Plan (CBP)
A plan, offered by an employer, that allows eligible employees to set aside payroll deductions taken on a tax-free basis to pay for qualified commuting expenses as defined under IRC Section 132(f).
Commuter Benefit Plan Accounts
An eligible employee can have payroll deductions put into a Mass Transit and/or Parking Account(s) to pay for qualified workplace commuting expenses.
An employee's salary reductions used to pay for qualified benefits.
The time period specified in the plan documents during which employees are given the opportunity to elect to participate in a Flexible Benefit Plan or Commuter Benefit Plan.
The Employee Retirement Income Security Act of 1974. This act deals with specific employee rights under benefit plans.
Federal Insurance Contributions Act. Commonly referred to as Social Security Tax.
Flexible Benefit Plan
Eligible employees may choose among two or more benefits consisting of cash and nontaxable benefits.
Flexible Spending Account (FSA)
An account funded with tax-free dollars that can be used to reimburse plan participants for eligible expenses. There are two types of accounts: medical or dependent care.
Federal Unemployment Tax Act.
Health Reimbursement Account (HRA) Plan
A plan under which the employer contributes funds to an account for eligible employees to use for reimbursement of qualified medical expenses.
Health Savings Account (HSA)
A tax-advantaged account that is combined with an HSA-compatible health plan to assist eligible employees in paying for out-of-pocket medical expenses (e.g. deductibles, co-insurance and other expenses not covered by the plan).
HSA-Compatible Health Plan
A health plan which meets the requirements defined by the IRS to be offered with an HSA. HSA-compatible health plans are often referred to as high deductible health plans.
Employer funds provided to the employee for the purchase of benefits. These are sometimes referred to as a "Benefit Credit."
The entity or individual who has complete control over the operation of a Flexible Benefit Plan, Health Reimbursment Plan or Commuter Benefit Plan, and who monitors movement within the plan and reserves the right to make changes or terminate the plan. The employer is usually the Plan Administrator.
A formal written document that sets forth the FSA or HRA Plan's terms and conditions.
Plan Highlights/Plan Specifications
These customized documents may contain specific information regarding eligibility requirements, plan effective date, eligible benefits, etc.
A document that identifies the Commuter Benefit Plan's benefits and election requirements in easy-to-understand terms.
The period of time specified in the FSA or HRA Plan Document for the actual operation of the plan.
Summary Plan Description
A separate document which summarizes the FSA or HRA Plan's eligibility requirements, benefits and election requirements. This document must be written in an easy-to-understand style and must be provided for each employee eligible to participate in the plan.
Any funds that remain in a Medical or Dependent Care Flexible Spending Account after the grace period following the end of the Plan Year will be forfeited by the participant.
Form issued by the employer to the employee to indicate earnings and withholdings at the end of the tax year. This form must be issued by January 31 for the previous calendar year.