Flex Spending Account

Questions about these changes may be directed to benefits@cityofmadison.com.

Flexible Spending Accounts Information

Total Administrative Services Corporation (TASC) is the third party administrator for the Flexible Spending Account (FSA).

The City of Madison offers an optional Flexible Spending Accounts (FSA) program. Employees can place pre-tax dollars in a Healthcare Account and/or a Dependent Care Account. Participating employees will automatically have the money deducted from their paycheck and deposited into the respective account by payroll.

Employees sign up for flexible spending on a calendar year basis and must re-enroll annually during open enrollment. New employees may sign up within their first 30 days of employment, and their coverage will begin their first day of employment.

Please note that expenses related to domestic partners and domestic partners' children (who are not the employee's own child) are not allowed to be reimbursed through Flexible Spending Accounts. Flexible Spending Accounts are bound by IRS definitions of what pre-tax dollars can be used for.

Save Money with FSA pretax benefit accounts

Healthcare Account

Employees can contribute a maximum of $3,200 annually to their healthcare flexible spending account for the 2024 plan year. Healthcare account maximums are on a per employee/per employer basis.    You will have access to your total Healthcare FSA annual contribution immediately at the start of the plan year.

Deposited funds can reimburse employees for:

• Prescriptions
• Dental services
• Insurance co-pays and deductibles
• Other qualifying expenses

Flexible Spending dollars cannot be used to pay for insurance premiums, as insurance premiums are already paid using pre-tax dollars.

Healthcare Flexible Spending Worksheet
TASC Letter of Medical Necessity

Dependent Care Account

Dependent care expenses must be for qualifying person(s).

Employees can contribute a maximum of $5,000 to a dependent care flexible spending account (a maximum of $2,500 for married individuals filing separately) for the 2024 plan year. Dependent care account maximums are on a per family basis.  Funds are available up to the current account balance only (year-to-date payroll deductions).

Deposited funds can reimburse employees for:

• Daycare expenses
• Pre-school tuition
• Other qualifying expenses

Using Funds

You have two ways to access your available funds:

1. Total Administrative Services Corporation (TASC) Payment Card: Upon enrollment, you will receive a TASC payment card in the mail, which can be used to pay for eligible healthcare expenses anywhere Mastercard is accepted. A claim paid using the TASC payment card is still required under Internal Revenue Service rules to be substantiated as an FSA-eligible expense. If a payment card claim is unable to be auto-substantiated via a pre-established database or claim feed, you may be required to provide supporting documentation (receipt, Explanation of Benefit, etc.) in order for the claim to be considered valid. It is recommended that you save receipts for all expenses, as they may be required to substantiate claims.  
2. Request a reimbursement: Submit a claim to be reimbursed for qualifying expenses, as well as a receipt documenting the expense. You may submit a request for reimbursement via the TASC Mobile App, Online Request for Reimbursement form via the TASC website, text message, fax or mail.

Because FSA claims may be subject to audit, it is recommended that records and receipts related to FSA claims be kept for a minimum of three years beyond the tax filing date for the year that the expenses were incurred.

Change of Election

Certain qualifying events allow a change to be made to the annual election amount for a flexible spending healthcare and/or dependent care account. Please see the Flexible Spending Change of Election form for more information on events that may qualify you to make a change.

Use-or-Lose Rule

Employees must use the amount in their accounts in the calendar year in which the money is placed in the account or within a grace period that typically extends through March 15 of the following calendar year. The unused amount otherwise cannot be rolled over from year to year. Money that is unused at the end of the grace period in the calendar year following the plan year will be forfeited to the employer.

Request Card for Spouse/Dependent

Each participant receives one TASC payment card upon enrollment. Additional cards for a spouse and/or adult dependent child(ren) are available at no additional cost.

• Online: Login to your TASC account.
• Phone: ​Contact TASC Participant Support Services 24 hours per day/7 days per week at 800-422-4661

The TASC payment card and a standard Cardholder Agreement will be mailed directly to your mailing address.