Benefits: Flexible Spending Accounts

Chancellor & Chancellor, Inc. offers the Section 125 benefits. Flexible Spending Accounts, which enables contractors to put aside pre-tax money to be used for various expenses related to health or dependent care.

Health Care Flexible Spending Account. The contractor simply decides how much money he/she would like to have taken out for health purposes for the year or portion thereof. This amount must be $3,000.00 or less for an entire calendar year. If a contractor is working only a portion of the year, this maximum amount to be deducted will be pro-rated. The appropriate amount will then be deducted pre-tax from the contractor’s paycheck every payroll period.

Dependent Care Flexible Spending Account gives you a tax break on every dollar you spend on dependent care expenses. It covers not only your dependent children, under age 13, but anyone considered your dependent for income tax purposes. You decide how much you want to deposit, within the limit specified by our company’s administrator, to cover your calendar year dependent care expenses. These must be expenses that make it possible for you, or you and your spouse, to work.

The maximum amount that you can deposit for a total plan year is $5000. If you are working only a portion of the year, this maximum amount will be pro-rated. The appropriate amount will then be deducted pre-tax from your paycheck every payroll