2026 CODAC Benefit Summaries and Carrier Flyers

ADVISORY | HUMAN CAPITAL MANAGEMENT

Flexible Spending Accounts

A CBIZ Flexible Benefits plan is a win-win for employees by allowing them to save on federal, state, and FICA taxes for all contributions.

Employee Tax Savings Example Here’s how contributing to a Flexible Spending Account (FSA) can impact an employee’s paycheck and reduce taxes. This example shows an employee earning $30,000 per year who contributes $2,500 annually to a Flex plan for medical and dependent care.

Without FSA With FSA

Annual Salary

$30,000

$30,000

Annual FSA Election

$0

$2,500

Taxable Income

$30,000

$27,500

• Dual-purpose procedures or items can be claimed for reimbursement if accompanied by a letter of medical necessity specifying the item or treatment. This letter is kept on file for one year and must be updated annually. • To ensure timely processing of claims, keep the following in mind: » A receipt must accompany a claim » Credit or debit card receipts are not acceptable » The original date of service must be on the receipt » The type of service must be on the receipt What is an FSA? An FSA allows employees to pay for certain qualified expenses with pre-tax dollars, saving employees on federal income tax, state income tax, and FICA tax. What expenses are eligible with an FSA? • Medical deductibles, dental deductibles, and the participant share of co-payments • Physical examinations, chiropractic expenses, and orthodontics • Vision expenses not fully covered by any vision plan • Uncovered prescription drugs and insulin Frequently Asked Questions

Estimated Combined Federal, State & FICA Taxes (30%)

$9,000

$8,250

After-Tax Income

$21,000

$19,250

Non-Taxable Flex Reimbursement Net “Spendable” Income

$0

$2,500

$21,000

$21,750

Annual Tax Savings

$0

$750

Helpful Information for FSA Benefits

• Claims are processed and reimbursed weekly. The account can be accessed anytime at myplans.cbiz.com. • A receipt for reimbursement requires the following:

» Item purchased or type of service provided » Date of service » Provider information » Participant responsibility

• Credit or debit card receipts and canceled checks are not acceptable receipts under IRS guidelines. • Items that are cosmetic in nature are not reimbursable under an FSA.