Changes from the COVID-19 relief bill of December 2020
The Federal government passed legislation for COVID-19 relief, which provides employers with additional options to amend their Flexible Spending Account plan and provide relief to employees during the COVID-19 outbreak.
What's changing for health care expense accounts?
Normally, you can only roll over up to $500 in flexible spending for health care expense accounts per IRS rules. Under the provisions of the law that the county is adopting, employees will be allowed to roll over any remaining balance from 2020 into 2021.
What's changing for dependent care expense accounts?
Normally, money set aside in one year cannot roll over after March 15 of the following year from one year to the next. Under provisions Hennepin County is adopting:
- Employees will be able to roll over any balance from 2020 into 2021.
- The age limit is being increased from 13 to 14 years old.
To log into your account, get a refresher on how to use your debit card, submit a claim and more, visit padmin.com.
Balance roll over
- If you have money remaining from 2020, you will see that roll over into your account for use in 2021 in mid-April.
Questions?
For more information, visit the webpage and read the handout. We understand the rules around health and dependent care expense accounts can be complex and individual situations may vary. For assistance, contact our HR Service Center staff at 612-348-7855.
Signing up for flexible spending accounts
The county offers several types of flexible spending accounts. You can sign up during open enrollment.
Flexible spending accounts start the first of the month after your first day of work or after the first day you start earning benefits (for example, if your first day of work is February 15, your insurance starts March 1).
Health care expense account
- You can set aside money pre-tax for medical, dental or vision expenses and other eligible health care related expenses.
- You can cover expenses for yourself and any dependent listed on your taxes.
- You must enroll during open enrollment each year for the following year.
- You choose an amount to set aside for the year and the entire amount is available to you January 1.
- You can set aside up to $2,750 per year, per employee.
- You don’t have to take part in the county's medical, dental or vision plan to have an employee-funded health care expense account.
- If you have a life event mid-year (like a marriage, birth, death, etc.) you can change the amount you set aside.
- View the list of expenses you can cover with a health care expense account (PDF).
If your spouse has a Health Savings Account (HSA) with another employer
- You cannot choose the health care expense account.
- Because both plans save on taxes, the IRS prevents married couples from using both.
Using your account
- You can use the P&A issued debit card, or submit claims. Save your receipts.
- Electronic claim upload from your computer or Smartphone or by downloading the P&A mobile app.
- Pay out of pocket and submit a reimbursement form (PDF).
You must submit your claims for the current plan year by March 31 the following year. If you have leftover money, you can carry over up to $550 of it the next year. You lose any unused money over $550.
Learn more about using your debit card and submitting claims (PDF).
Change the amount you set aside (PDF).
Contact
P&A Group
1-833-752-9413
M–F, 7:30am – 9:00pm CST
https://www.padmin.com/hennepin/
Dependent care assistance
- You can set aside pre-tax dollars for certain day care and elder care costs.
- If you’re married, you and your spouse must be working, attending school full time or looking for work.
- A family can set aside up to $5,000 per year.
- If you’re married and filing taxes separately, you can set aside up to $2,500 per year.
Eligible expenses
- Care for a child under age 13
- Care for someone who can’t care for themselves and who lives with you more than half the year
- In-home child care
- Licensed day care
- Preschool
- Before- and after-school care
- Elder care
Kindergarten fees aren’t covered.
Enrollment and changes
You can enroll during open enrollment. If you have a life event mid-year, you can enroll mid-year or make changes. Mid-year change form (PDF)
You can make changes within 30 days of:
- Date your daycare began or ended
- Date your daycare began with a new provider
- Change in cost or coverage with your previous provider
Reimbursement
- You can turn in claims for expenses you had from January 1 to December 31
- You have until March 15 of the next year to incur claims. You have until March 31 to turn in claims for the previous year.
- You give up any unused funds
- Reimbursement form (PDF)
Contact
P&A Group
1-833-752-9413 Mon-Fri 7:30am – 9:00pm CST
https://www.padmin.com/hennepin/
Adoption assistance
- You can set aside pre-tax dollars for certain adoption costs
- You can set aside up to $12,000 per year
Eligible expenses
- Attorney fees
- Court costs
- Counseling fees
- Travel fees
For questions, contact P&A Group 1-833-752-9413.
U.S. adoptions
If the child is a U.S. citizen or resident of the U.S., you can be reimbursed even if the adoption never becomes final.
Foreign adoptions
If the child is not a U.S. citizen or resident, you can’t be reimbursed unless the adoption becomes final.
Enrollment and changes
- You can enroll during open enrollment.
- If you have a life event mid-year, you can enroll mid-year or make changes
- Mid-year change form (PDF)
You can make changes at these times:
- Start or end of the adoption process
- Increase in the number of children you intend to adopt
Reimbursement
- You can turn in claims for expenses you had from January 1 to December 31
- You have until March 15 of the next year to incur claims. You have until March 31 to turn in claims for the previous year.
- You give up any unused funds.
- Reimbursement form (PDF)
Contact
P&A Group
1-833-752-9413 Mon-Fri 7:30am – 9:00pm CST
https://www.padmin.com/hennepin/