FSA and HSA-SP

Overview

To help employees plan ahead and save for health-related expenses, we offer a Flexible Spending Account (FSA). An FSA is an employee-sponsored program that allows you to set aside money from your paycheck on a pre-tax basis to pay for medical co-pays, prescriptions and other eligible expenses for you and eligible dependents. 

We offer a Dependent Care FSA (DCFSA). DCFSA is a tax-saving account where you can set aside up to $7,500 per year, taken from your paycheck before taxes, to cover eligible dependent care expenses. These expenses can include daycare, nursery school, before- and after-school care, and adult daycare services.

Finally, for those enrolling in an HSA medical plan, you are eligible for a Health Savings Account (HSA). 

The contributions made to any of these plans are pre-tax, reducing taxable income. Based on your selection, semi-monthly payroll deductions will be taken from your paycheck on a tax-free basis. 

This benefit will be administered by Health Equity.

On the Health Equity site, you can review your FSA for medical expenses and/or dependent care expenses, submit for reimbursements, request new cards or contact customer service.

Please note that WageWorks is now EZ Receipts!

 We’re excited to share that WageWorks has rebranded to EZ Receipts, aligning with the mobile experience you already know and trust.

When you log in, you’ll notice a fresh new look — but rest assured, everything functions the same. Only the name has changed!

What You Need to Know

1. Access Your Account

 You can now log in directly at HealthEquity.com

 — no need to visit WageWorks.com.

2. Manage on the Go

 The EZ Receipts mobile app remains the easiest way to manage your benefits. If you haven’t already, download it today to keep your benefits at your fingertips.

To set up an account:

• Go to https://my.healthequity.com/Signup/MemberActivation.aspx  

• Click on EZReceipts and go through the steps:

  • Find your account (you’ll submit your first name, last name, date of birth, zip code)

  • Verify your identity (last 4 digits of SSN + last 4 digits of your Health Equity card which you will have received in the mail)

  • Set up your login (username, password, security question)

  • Your email settings (submit your company email address)

  • You will then get an email to your company email address that your account was successfully set up!

  • Bring your benefits with you — download the EZ Receipts mobile app today!

Types of Eligible Expenses

Healthcare FSA funds may only be used for eligible expenses under your healthcare FSA and/ or dependent care FSA. Some eligible expenses include:

• Medical/dental office visit copays

• Dental/Orthodontic care services

• Eye exams and prescription glasses/lenses

• Prescriptions

• Vaccinations

• Daycare Fees for children under 13 or adult dependents who aren’t capable of caring for themselves

A complete list can be found at www.irs.gov in IRS Publications 502 (for medical expenses) & 503 (child and dependent care expenses). 

*Please note: insurance premiums are NOT eligible for reimbursement.

Unused Balance and Rollover Rules

• Rollover Amounts:

  • • You can roll over up to $660 of unused FSA funds into your 2026 account.

    • For your unused balance from 2026, you can roll over up to $680 into 2027.

• Use of Rollover Funds:

  • • The IRS sets an end date of December 31 each year to use your funds for that plan year.

    • However, the IRS allows you to roll over eligible unused funds (up to the maximum allowed) into the next year. For example, unused 20265 funds can be rolled over into 20276.

    • The IRS encourages you to use your funds by the deadline, but it’s good to know that rollover funds will still be there for you if needed.

• Reimbursement Deadlines:

  • • For 2025 funds rolled into 2026, you must use them by March 31, 2026.

    • For 2026 funds rolled into 2027, you must use them by March 31, 2027.

    • Claims for healthcare expenses incurred by December 31 of a plan year must be submitted by the following March 31.

• Availability of Rollover Funds:

  • • Rolled-over funds won’t be available until April 15 due to a waiting period for employees to submit reimbursement claims from the prior year

• • • FSA Cards:

      1. • You will receive one FSA card for yourself and your family.

         • Additional cards can be ordered through Health Equity if needed.

Important Things to Note 

• Contribution Limit: The maximum contribution for 2026 is $3,400 per year.

• Reimbursement Deadline: You have until March 31, 2027, to claim reimbursements for healthcare expenses incurred through December 31, 2026.

• For FSA Healthcare, you will receive one card for you and your family. You may order more through Health Equity.

Orchestra Health Equity Account number: 39559 

For questions about your Healthcare FSA, Dependent Care FSA, or Health Savings Account (HSA), you can reach Health Equity at:

Phone: 1 (866) 346-5800 or go here.

Availability: 24/7 – They are available to assist you every hour of every day.

For more information, please visit here. If you have questions, please contact HR.

If you are enrolled in the BCBS HSA Health Plan, you are eligible to open a Health Savings Account (HSA). An HSA is a tax-advantaged, employee-owned account that allows you to save pre-tax dollars for qualified medical expenses. Funds can be invested in mutual funds tax-free and never expire, making it an excellent option for saving for future healthcare needs. You can use HSA funds to pay for deductibles, copayments, coinsurance, and other qualified expenses, potentially lowering overall healthcare costs.

For the 2026 plan year, the contribution limits are $4,400 for individuals and $8,750 for families. 

Orchestra will contribute: 

• $1,000 annually for Individual Plans 

and 

• $2000 annually for Family or Employee + One Plans. 

The main difference between an HSA Savings Plan and a Flexible Spending Account (FSA) is that HSAs are employee-owned, with funds that roll over year to year, while FSAs are employer-owned, less flexible, and typically require funds to be used within the plan year

On the Health Equity site, you can review your FSA for medical expenses and/or dependent care expenses, submit for reimbursements, request new cards or contact customer service.

To set up an account:

• Go to https://my.healthequity.com/Signup/MemberActivation.aspx   

• Go through the steps:

  1. Find your account (you’ll submit your first name, last name, date of birth, zip code)

  2. Verify your identity (last 4 digits of SSN + last 4 digits of your Health Equity card which you will have received in the mail)

  3. Set up your login (username, password, security question)

  4. Your email settings (submit your company email address)

  5. You will then get an email to your company email address that your account was successfully set up!

Types of Eligible Expenses

Your Dependent Care FSA (DCRA) can be used to reimburse eligible expenses for the care of qualified dependents while you (and your spouse or partner, if applicable) work or attend school.

Eligible expenses include:

• Daycare, preschool, or nursery school for children under age 13
  
  

• After-school programs or summer day camps
  
  

• Licensed child care providers (in-home or facility-based)
  
  

• Adult day care for a dependent who is physically or mentally unable to care for themselves

For a complete list of eligible expenses, visit the IRS website and refer to Publication 503 – Child and Dependent Care Expenses.

Please note: expenses for overnight camps, educational tuition (such as kindergarten), or care provided by a dependent (for example, an older sibling) are not eligible for reimbursement.

Contribution Limit

• The maximum DCRA contribution for 2026 is $7,500 per household (IRS limit).

• This limit applies per household, even if both spouses or partners participate in a DCRA.
  
  

If you and your spouse/partner file separate tax returns, each may contribute up to $3,750.

Use-It-or-Lose-It Rule

The Dependent Care FSA does not allow rollover of unused funds into the following year. 

All funds must be used for eligible dependent care expenses incurred between January 1 and December 31, 2026.
Any unused balance after this date will be forfeited, per IRS regulations.

To avoid forfeiture, estimate your dependent care expenses carefully when setting your annual election.

Reimbursement Process

• The DCRA is a reimbursement-only account — there is no debit card for dependent care expenses.

• You will pay your provider directly and then submit claims for reimbursement through your HealthEquity account.

• Claims must include documentation showing:

  • The provider’s name, address, and tax ID number

  • The dates of service and amount paid
    
    

Reimbursements can be submitted via the HealthEquity website or mobile app.

Reimbursement Deadline

• You have until March 31, 2027, to submit claims for expenses incurred through December 31, 2026.

Dependent Care Flexible Spending Account 

Non-Discrimination Testing

Each year, we review our Dependent Care Flexible Spending Account (DCFSA) to make sure it continues to meet IRS guidelines and remains fair for all employees. 

This annual review, called non-discrimination testing, is a standard compliance process for employers who offer this benefit.

What is Non-Discrimination Testing?

This is a standard IRS requirement. Each year, we review our Dependent Care FSA to confirm that it doesn’t disproportionately benefit Highly Compensated Employees (HCEs). Completing this test helps us keep the plan compliant and ensures these valuable tax-advantaged benefits remain available to all eligible employees.

Who is considered a Highly Compensated Employee (HCE)?

For testing purposes, the IRS defines an HCE as someone who meets either of the following criteria:

• Ownership Test: You owned more than 5% of the business at any time during the current or previous plan year, or
  
  

• Compensation Test: Your prior-year compensation exceeded the IRS threshold. For 2026 testing (based on 2025 wages), that threshold is $160,000.
  
  

Employees who do not meet one of these criteria are classified as Non-Highly Compensated Employees (NHCEs).

How does this affect you?

The review looks only at participation and contribution amounts. It does not use any dependent or personal caregiving details.

If the results show that participation or contributions from Non-Highly Compensated Employees are significantly lower than those of Highly Compensated Employees, we may need to make adjustments to keep the plan compliant.

If you are classified as an HCE and an adjustment to your DCFSA election is required, HR will contact you directly with next steps.

Questions related to the DCFSA Law?

IRS Resources

You can review general IRS guidance on Dependent Care Assistance Programs and nondiscrimination rules here:

IRS Publication 15-B Employer’s Tax Guide to Fringe Benefits (Dependant Care rules including HCE testing) (See Section on DCAP and HCE/Nondiscrimination)

IRS general rules for Highly Compensated Employees (IRC Section 414(q))

Need Help with your Dependent Care FSA ?

For questions about your Dependent Care FSA, contact:

📞 HealthEquity: 1-866-346-5800 (available 24/7)

📧 HR@orchestraco.com