The money which is reimbursed has not been and will not be taxed. An employee may not transfer money from one spending account into another spending account. Money from the health care account cannot be used to pay for dependent day care expenses, and money from the dependent care account cannot be used to pay for health care expenses. To participate in the health care flexible spending account, the employee must complete a KanElect enrollment form. 9-month employees will have deductions taken from the first 10 paychecks in the spring and the last 8 paychecks in the fall each calendar year.
Accounts end at the end of the payroll period in which termination occurs.
Monies left in the health care flexible spending account at the end of the calendar year are forfeited if claims for services did not occur during the same calendar year. If an employee ends their employment with the State of Kansas or stops making deposits when they have a change in family status, they have until March 31 following the end of the plan year to file claims which were incurred up to the end of the payroll period of their termination of employment or family status change. The employee determines how much they will spend on dependent care during the calendar year. These expenses must be employment-related, and are the amounts the employee will spend in order for the employee and their spouse, if the employee is married, to be employed outside the home. The employee then makes a biweekly election on the KanElect enrollment form and that amount will be reduced from their salary on a pretax basis.