employees

Cafeteria Plans / Flexible Spending Accounts

Hilltop National Bank, a locally-owned bank dedicated to personalized service, is your best choice for Employee Benefit Plan Administration. We offer secure and confidential Section 125 Cafeteria Plan Third Party Administration.

We can administer several accounts for your employees, including Medical and Dependent Care Reimbursement Accounts and Insurance Premium Savings Accounts. These accounts save your employees money on services they need, making them effective employee retention tools. Confidential processing of records is always diligently maintained.

Hilltop National Bank can:
• Provide enrollment and employee education materials and meetings
• Assist employer/plan sponsor with ongoing operational and compliance issues
• Provide plan documents needed for you and your employees
• Maintain monthly record keeping of all payroll contributions and claims submitted
• Issue reimbursement checks
• Plan year-end reporting and compliance
• Undertake confidential maintenance of all records
• Provide timely processing of contributions and claims
• Provide 24 hour access to plan account provisions, account balances, and claims detail via internet or voice response system

In order to meet IRS and ERISA compliance requirements, your plan must be in writing. Hilltop will supply you with the necessary documentation to meet these requirements. We charge a one-time set-up/ document fee and a monthly plan-processing fee.
Have questions? See our Frequently Asked Questions below, Call us today at (307) 577-3459, or Email a Representative.

Cafeteria Plan FAQ

What are the benefits of a Section 125 Cafeteria Plan?
Employees can pay for out-of-pocket medical expenses, daycare and group insurance premiums pretax. That saves them money. It is a benefit that enhances the overall benefit package and helps with employee retention. Employers save on matching FICA taxes, and Hilltop National Bank manages IRS compliance.

Who can participate in a Section 125 Cafeteria Plan?
Benefits can be made available to employees, their spouses and dependents. Generally, self-employed persons, partners and 2% Subchapter S shareholders are NOT eligible to participate.

What pre-tax accounts are available?
The Premium Payment Account (also called a POP or “Premium Only Plan”), Medical Flexible Spending Reimbursement Account, and the Dependent Flexible Spending Reimbursement Account.

What benefits can be included in a cafeteria plan?
Group sponsored health, dental, vision and other select insurance premiums, childcare expenses and out-of-pocket medical expenses.

How much can an employee contribute to a Flex Plan?
The employer sets the limits on the plan, with the exception of Dependent Care, which is a predetermined amount set by the IRS. For Dependent Care Reimbursement Accounts, the IRS allows you to elect a maximum of $5,000 a year.

Can the contribution amount be changed?
Only if the employee has experienced a change in status, i.e.: marriage, divorce, death or birth.

What expenses may be reimbursed from the Medical Flexible Spending Account?
Employees may use this account for expenses not paid by insurance or any other plan. Deductibles, co-pays, office visits, prescriptions, lab fees, surgical procedures, hospitalization, vision, orthodontia and dental expenses are eligible for reimbursement. For a more detailed list of eligible expenses, visit ezflexplan.com.

How much money can be saved by enrolling in a Cafeteria Plan?
Savings vary depending upon each employee’s income and tax filings. Average savings are 20% – 40%.

How are expenses reimbursed? Employees complete a claim form, which we provide to the employer or can be filled out online, sign the claim form and attach claim substantiation (receipts, or preferably an Explanation of Benefits “E.O.B.” if the item is insurance eligible).  If an “E.O.B.” is not available, receipts MUST include the following:
• Name of patient(employee or dependent)
• Name of provider
• Date services were incurred
• Description of services provided
• Amount incurred for services provided on that date; cancelled checks and receipts with a balance forward cannot be used to obtain reimbursement. Expenses paid by another health plan (i.e., insurance, spouse’s insurance and/or Section 125 Cafeteria Flexible Spending Plan, Workman’s Compensation, etc.) may not be reimbursed. For dependent care expenses, the employee may choose to have the dependent care provider sign and date the claim form in the appropriate box to certify the expenses were incurred in lieu of providing a separate dependent care receipt.

Mail or Fax claim to:
Hilltop National Bank
Attn:HR
PO Box 50566
Casper, WY 82605
or
(307)-577-3487 (fax)

Claims are entered on a daily basis.

How often are claims reimbursed?
Reimbursements can be issued daily, weekly or monthly as determined by the employer/plan sponsor.

How can an employee find out their account balance?
Employees can review balances and account activity online by logging onto www.myrsc.com. They can also call Hilltop National Bank to speak with a representative, or review check stubs.

Does Hilltop National Bank have an administrative website for Employers?
Yes! Employers have online administrative access for employee maintenance, reports and forms.

What happens if employment is terminated?
Participants have 90 days after employment terminates to submit eligible claims for payment on expenses incurred on or prior to their date of termination.

What are the fees for a Section 125 Cafeteria Plan?
In order to meet IRS and ERISA compliance requirements, your plan must be in writing. Hilltop will supply you with the necessary documentation to meet these requirements. We charge a one-time set-up/ document fee and a monthly plan-processing fee.

Who should I contact at Hilltop National Bank for more information?
Please contact the Human Resources Department at (307) 577-3459; or Email a Representative.