Employee Matters

This column is prepared by staff from the Office of Human Resources. E-mail questions to benefits@ohr.wisc.edu or call 262-5650. For more information, visit Payroll Services and Benefits Services.

The previous Employee Matters article reviewed all upcoming Fall Benefit Enrollment periods. This article focuses on the Employee Reimbursement Accounts (ERA) program.

What is the ERA program?

ERA allows employees to contribute a portion of their income through payroll deduction on a pre-tax basis to be reimbursed for eligible medical and dependent care expenses. Federal, Social Security and state taxes are calculated on your remaining salary. You keep more money in your pocket because you pay less in taxes.

The plan also allows certain insurance premiums to automatically be deducted on a pre-tax basis regardless of whether you contribute to an account. If you choose, you may file a waiver that would allow premiums to be taken post-tax. Important: Classified Limited Term Employees are not eligible for this pre-tax premium provision.

Who is eligible to enroll in the program?

Permanent/project classified or unclassified employees are eligible to enroll. Fellows, scholars, research assistants, limited-term employees and student hourly employees are not eligible to participate.

When is the annual open enrollment period?

The 2009 ERA open enrollment period will be held Oct. 6–Nov. 14 for coverage effective Jan. 1, 2009.

How do I enroll?

An e-mail will be sent to all eligible employees by early October with a link to ERA materials. The ERA booklet contains the procedures and an enrollment guide. You can enroll online or by telephone.

What types of expenses are eligible for reimbursement?

Please review the ERA booklet for details about expenses that can be reimbursed.

Can I claim reimbursements from the ERA program on my tax return?

No. You can either itemize medical expenses on your tax return if they exceed 7.5 percent of adjusted gross income or use the medical reimbursement account. In addition, you can not use the same expenses for the dependent care reimbursement account and the child care tax credit on your taxes. See the ERA booklet for more details.

How am I reimbursed?

After you receive services or pay for a product, submit the receipt and a reimbursement request form to Fringe Benefits Management Co. (FBMC), the program administrator. Medical expenses are reimbursed immediately, despite the value of your account at the time. Dependent care expenses will be reimbursed only when your account is large enough for reimbursement.

What happens if I don’t use all of the money in the account by the end of the plan year?

All expenses must be incurred by the end of the plan year or the money is forfeited. For plan year 2009, you will have until March 15, 2010, to incur expenses. All claims must be submitted to FBMC for reimbursement no later than April 15, 2010.

Where can I get more information?

Visit Payroll Services and Benefits Services, See What’s New for Fall Benefit Enrollment Information, and Employees for general information about the Employee Reimbursement Accounts program.

Or e-mail a benefits specialist.