
You can save money on health care and dependent care expenses by paying for them with tax-advantaged accounts.
Money goes in tax-free and comes out tax-free when it’s used for eligible expenses
Contribute to your accounts easily and effortlessly
Plan for upcoming expenses by setting aside money each paycheck
*Please note: When the CARES Act was signed into law, over-the-counter drugs and medicines became eligible expenses for your HSA and FSA funds without a prescription. You can now purchase pain relief, cold and flu, allergy, and heartburn medications and menstrual products, such as pads or tampons, with your HSA or FSA.
For more details and to enroll, visit Workday. Note: You must re-enroll in these accounts each year if you wish to participate; your elections do not carry over from one year to the next.
Here’s an example. Let’s say Tom decides to set aside $2,000 in an HSA or FSA for the year. Normally, on that money, he’d pay $560 in federal income tax, $100 in state income tax, and $153 in FICA tax. So, by contributing that $2,000 to his HSA or FSA, he’ll get an $813 tax savings for the year. Use the ALEX GO tool (available October 30) to estimate the tax-saving potential you could have by contributing to an HSA or FSA.
His total tax savings for the year with an HSA or FSA..........
Without an HSA or FSA, Tom would pay … | Savings |
---|---|
28% in federal income tax……………………………………………………….. | $560 |
5% in state income tax……………………………………………………………. | $100 |
7.65% in Federal Insurance Contributions Act (FICA) tax…………. | $153 |
$813 |
This hypothetical illustration is for educational purposes only. Dollar amounts or savings will vary depending on income, state and city tax rules, and other factors. Please consult a tax, legal, or financial advisor about your own personal situation.
If you enroll in the CHDP medical plan, you’re eligible to open and contribute money to a Health Savings Account (HSA) through HealthEquity. The HSA is a tax-free savings account you can use to pay for eligible health expenses anytime, even in retirement.
Put money in tax-free.
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Pay for care tax-free.**
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Carry unused money over.
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* Note: The minimum annual HSA election for 2023 is $120 (or $260 in 2024).
**Money in an HSA can be withdrawn tax-free as long as it is used to pay for qualified health-related expenses. If money is used for ineligible expenses, you will pay ordinary income tax on the amount withdrawn, plus a 20% penalty tax if you withdraw the money before age 65.
The limits on total contributions to your account are:
If you are age 55 or older, you can contribute an additional $1,000 each year.
If you currently have an FSA account and would like to enroll in the CDHP medical plan and open a Health Savings Account (HSA), all FSA funds must be exhausted or rolled into a Limited Purpose FSA before you’ll be able to contribute to your new HSA.
To enroll in and contribute to an HSA, you must meet the following requirements.
If you meet these requirements, you are eligible for an HSA even if your spouse has non-CDHP family coverage, provided you are not covered by your spouse’s medical benefits.
Under the last-month rule, you are considered eligible to contribute to an HSA for the entire year if you meet the individual eligibility requirements on the first day of the last month of your tax year (December 1 for most taxpayers). You are treated as having the same CDHP coverage for the entire year as you had on the first day of the last month, if you didn’t otherwise have coverage.
HSA contributions are made on a pre-tax basis federally and in all states, excluding California and New Jersey. If you live in California or New Jersey, your HSA contributions will be subject to state taxes. No matter what state you live in, your HSA contributions will not be subject to federal taxes.
Using Flexible Spending Accounts (FSAs) lets you save on your eligible health care and dependent day care expenses. The money you set aside in an FSA comes out of your paycheck before Social Security (FICA), federal, and state income taxes are calculated, reducing your taxable income. Typically, this results in a tax savings of 15%–30%, or more!
For information about commuter benefits, contact the Workplace Experience team.
Available to employees who do not enroll in an HSA through the CDHP medical plan or do not elect medical coverage through Sonos.
Choose your contribution amount carefully during Open Enrollment.
* This is the projected amount for 2024; the most up-to-date maximum approved by the IRS will be reflected in Workday.
Only use your FSA debit card for eligible expenses.
Paying for your eligible claims with your debit card.
Getting reimbursed for your eligible claims.
Simply create a login using your company pin (0103) and your Social Security number. If you have questions or need assistance, please visit WEX, or contact them directly at 866.451.3399.
Your WEX online account gives you access to a variety of helpful tools
Available only to employees who enroll in an HSA with the CDHP plan.
* This is the projected amount for 2024; the most up-to-date maximum approved by the IRS will be reflected in Workday.
Available to all employees.
HSA | Limited Purpose FSA | Health Care FSA | Dependent Care FSA | |
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Available with… | CDHP |
CDHP |
PPO Classic HMO plans (also available if you waive medical coverage) |
All plans (also available if you waive medical coverage) |
Change your contribution amount anytime | Yes | No | No | No |
Access your entire annual contribution amount starting January 1 | No | Yes | Yes | No |
Access only funds that have been deposited | Yes | No | No | Yes |
“Use it or lose it” at year-end | No | Carry over up to $610; the rest is forfeited | Carry over up to $610; the rest is forfeited | Yes (no carryover allowed) |
Money is always yours to keep | Yes | No | No | No |