Frequently Asked Questions
Q. What is a Health Care Spending Account? The Health Care Spending Account offers significant income tax savings opportunities for eligible expenses. Essentially, you accumulate money in an account by contributing through convenient pre-tax payroll deductions. Then you draw from the account to reimburse yourself for out-of-pocket expenses. Both your payroll deductions and reimbursements are tax-free. You can even have your reimbursements direct-deposited into your savings or checking account.
Q. When does the Plan Year begin? The Plan Year is June 1 through May 31. Your coverage begins on the date stated in your personalized statement (typically, the first of the month following 90 days of continuous full-time employment through May 31 – a partial Plan Year) or on June 1st of the current year if enrolling as part of the Annual Enrollment. Before the Plan Year begins, determine your anticipated expenses.
Q. What is a Dependent Care Account?The Dependent Care Spending Account allows you to pay for certain dependent care expenses - such as preschool/daycare, before and after school programs, day camp and eldercare services - with pre-tax dollars. As a result, you save money by lowering your taxable income and your taxes. Under this program, your contributions are not subject to federal, state, and Social Security taxes. Generally, this tax savings can be between 22% and 40%, depending on your tax bracket. As a direct result of these personal tax savings, you can actually increase your disposable income.
Q. How do I enroll? Follow these steps to enroll:
- Estimate the expenses that you
will incur during the Plan Year. The minimum plan year election for the Health
Care Spending Account is $260 to a maximum of $5,000. The minimum plan year election
for the Dependent Care Spending Account is $260 to a maximum of $5,000 ($2,500 if
you are married and file separate federal income tax forms).
Please note: In order to meet IRS non-discrimination rules, employees who earned more than $100,000 in the previous calendar year will be limited to $1,500 in contributions. This amount may change later in the year, subject to final non-discrimination testing.
- The Plan Year runs from June 1 - May 31.
If you are enrolling mid-year, be sure to adjust your contribution accordingly. Determine
the amount you would like to contribute. Divide that amount by the number of pay periods
left in the plan year.
- Visit my.cvs.com or call the CVS Benefits
Line toll-free at (888) 861-4363 prior to your enrollment deadline which
is printed on the first page of your new hire letter. The CVS Benefits
Line is available 24 hours per day, seven days per week until the date
listed in your New Hire materials. The CVS Benefits Line will ask you
to enter your Member ID number (found in the upper right-hand corner
on your New Hire letter or on your paycheck), and your PIN which is
the last four digits of your Social Security Number.
- The system asks you to confirm your election.
Once completed, you will receive a confirmation statement of your benefit elections.
We will send a welcome packet which will include a direct deposit form as well as claim forms.
Please be sure to review your paycheck for your contribution amount(s).
