Frequently Asked Questions
Q: How do I contribute money to my FSA?
A: Once you make your annual election, your employer will deduct this amount from your paycheck in equal amounts throughout the year, before taxes are taken out.
Q: How do I get reimbursed?
A: It’s simple. Pay for eligible expenses out of your own pocket and then submit (toll free fax or mail) a reimbursement form, available when you login into your online account, with the appropriate documentation. ADP will process your request promptly and reimburse you either through direct deposit into your bank account or send you a check.
For healthcare FSA expenses you may be able to use your ADP Spending Account Card. If your employer has opted to provide a Spending Account Card, you will receive one automatically.
Also, some employers without the ADP Spending Account Card have arranged for ADP to receive information that allows us to reimburse you directly without sending in a reimbursement form! Your employer can tell you if this applies to your FSA plan.
Q: How do I submit a reimbursement form?
A: To reimburse you quickly, ADP uses company-specific reimbursement forms. You can obtain your employer’s reimbursement form by logging into your online account. Detailed instructions are included with the form.
Q: If I elect to participate in the healthcare and/or dependent care account, how long will my election be in effect?
A: Your election will be in effect until the end of the plan year. You must re-enroll each year if you want to continue participating. You may only start, stop or change your contribution amount during the plan year if you have a qualifying event in your family situation, such as marriage, divorce or the birth of a child.
Q: Can I use a healthcare account if I have health insurance?
A: Yes. In fact, the healthcare account is designed to cover expenses not paid by your health plan—including co-payments and deductibles, as well as tax-deductible expenses many health plans don’t cover.
Q: If I contribute to both the healthcare and dependent care accounts, can I use money in one account to pay for expenses from the other?
A: No. The Internal Revenue Service (IRS) requires that you keep the two accounts separate.
Q: What if I have money left in my account at the end of the year?
A: Under current IRS regulations, you forfeit that money. This is known as the “Use-It-Or-Lose-It” rule. It’s important to consider all your potential expenses when deciding how much to contribute to your FSA. The FSA Calculator can help you plan your annual contribution.
NOTE: The IRS allows employers to add an extension that might enable you to incur expenses for 2 1/2 months beyond the current plan year to help use any remaining FSA funds. Check with your employer to see if this extension is available to you.
Q: What if I use up all the money in my account before the end of the year? Can I contribute more?
A: No. You can only change the amount you are contributing if you have a qualifying event in your family situation, such as marriage, divorce or the birth of a child.
Q: If I use the healthcare account, can I also deduct healthcare expenses on my tax return?
A: Yes, but you cannot deduct the same expenses for which you have already been reimbursed from your FSA and vice-versa.
Q: What is the deadline for incurring expenses?
A: The default deadline is the end of the plan year, however, the IRS recently added an extension that allows FSA participants to incur expenses for 2 1/2 months beyond the current plan year to help use any remaining funds. Check with your employer to see if this extension is available to you.
Q: What is the deadline for submitting a reimbursement request?
A: You can submit a reimbursement request at any time during the same plan year you incur the expense. You also have a grace period following the end of the plan year—usually until the end of the third month of the following year (e.g., March 31st for a plan year that ends on December 31st). Check with your employer to see if this grace period is available to you.
Q: If I use the dependent care account, can I also use the federal tax credit for dependent care expenses?
A: Maybe. You cannot deduct the same expenses for which you have already been reimbursed from your FSA and vice-versa.
Q: What if I leave the company or retire during the year and still have money in my account?
A: You will be reimbursed for eligible expenses incurred before the date you retired or left the company. However, if you’ve been reimbursed for all the expenses you incurred during employment and still have a balance in your account, IRS regulations state that you forfeit those funds. Expenses you incur after the end of your employment are not eligible for reimbursement. Please see your plan documents for more information.
Q: How do I get reimbursed for over-the-counter (OTC) medicines?
A: You will need to complete a reimbursement form and attach an itemized receipt including the name of the medicine, the purchase price and the date purchased.
Q: I know that vitamins and supplements are not eligible because they are taken to support the general well-being of a person. However, what about natural or homeopathic remedies prescribed by an herbalist to treat the affects of bronchitis, colds, etc.?
A: Supplements would be eligible if (1) the item purchased is for medical care and not for an individual's well-being, and (2) you have a statement from a third-party documenting the medical condition being treated. See the ADP FSA Eligible Expense Guide for more information.
Q: Are OTC weight-loss items eligible?
A: Yes. However, you will need to submit a doctor’s statement with your reimbursement request verifying that the patient's diagnosis is obesity and that the OTC was prescribed to treat obesity. Keep in mind, an FSA will not pay for the cost of food supported by a weight-loss program.
Q: What is the turn around time for processing a reimbursement request?
A: The normal turn around time for processing reimbursement requests is 3-6 business days from the date a reimbursement request is received.
Q: Where can I obtain additional reimbursement forms?
A: You may download claim forms online at www.myshps.com.
Q: How can I check on the status of my reimbursement?
A: You may check the status of your request by calling 1-800-678-6684 or by logging into your online account.
Q: How do I receive my reimbursements by direct deposit?
A: You may sign-up for direct deposit online after you login to your account.
Q: What should I do if I closed my bank account and have a direct deposit account with ADP?
A: You should notify ADP immediately of any changes in your account, such as account closure or change in account number by calling customer service at 1-800-678-6684.
Q: How long does a direct deposit take to be posted to my bank account?
A: The standard turn around time for deposit into your account is 48 hours from the time ADP transmits the amount.
Q: My request for reimbursement was denied. What do I need to submit?
A: You will be notified of the reason your claim was denied either by e-mail or postal mail. Sometimes the expense may not be listed as an eligible expense. Other times ADP may need additional documentation. Review the ADP FSA Eligible Expense Guide along with other necessary documentation.
Q: What is a Letter of Medical Need or Doctor’s Statement?
A: The IRS requires that expenses for medical procedures and services reimbursed through an FSA must be primarily for the diagnosis, treatment or prevention of disease or for treatment(s) affecting any part for function of the body. For example, your doctor may prescribe a vitamin to treat your medical condition. Because vitamins are generally considered an ineligible expense, you will need a letter from your medical provider detailing the type of service rendered and the treatment necessary.
Q: Where can find a list of eligible expenses?
A: The IRS provides specific guidance regarding eligible expenses (see the ADP FSA Eligible Expense Guide). However, FSA eligible expenses vary by employer. Please see your employer’s plan documents for more information about what is covered under your plan.