Human Resources

Amherst Plan

The Amherst Plan is a flexible spending plan established under Section 125 of the Internal Revenue Code. All regular employees may elect annually to pay for certain eligible expenses with before-tax salary dollars. By excluding these dollars from income for federal, state and Social Security tax purposes, less income tax is due at year-end. When eligible expenses for medical care or dependent care are submitted, the employee is reimbursed from his or her account.

Employees may choose to make before-tax deductions for any health insurance premiums they pay and/or set aside salary dollars to cover qualified out-of-pocket health and dependent care expenses. Up to $6,500 per year may be set aside for medical expenses and in accordance with IRS limits, $5,000 may be allocated for dependent care. Expenses incurred during a Plan year will be reimbursed up to the amount set aside in the related account. The IRS requires that any money remaining in an employee's account at the end of a Plan year will be forfeited, so it is important to estimate carefully. Fiscal year elections are irrevocable except in the event of a qualified change in family status. Any change in election must occur within 30 days of the qualifying event.

Otherwise, participation is on a fiscal year basis (July 1 - June 30) with an annual open enrollment period. New employees may enroll in the Plan within 90 days of hire date. Specific plan details and enrollment information are available in the Office of Human Resources.