Flexible Spending Accounts (FSAs)

Set Aside Money to Pay for Eligible Out-of-Pocket Expenses
Hertz Benefits 5 Guide 5 Financial 5 Flexible Spending Accounts (FSAs)

If you plan to enroll in the CDHP for 2025 and contribute to an HSA, you must spend down remaining dollars in your Health Care FSA (HCFSA) before contributing to or using your HSA. Failure to comply could result in a tax penalty.

Benefits of Enrolling in an FSA

Flexible spending accounts (FSAs) enable you to set aside some of your pay, on a pre-tax basis, into an account to pay for eligible health care or dependent care expenses.

  • By using pre-tax dollars to pay for these expenses, you lower your taxable income, which can reduce the amount of taxes you pay.
  • You can enroll in an account even if you’re not enrolled in any other Hertz benefits.
  • You can elect the health care FSA (HCFSA), the dependent care FSA (DCFSA), or both.
  • Use the information on this page to determine the best account(s) for you.

Plan carefully when determining how much to contribute to your FSA. You must incur eligible expenses no later than March 15, and submit claims for reimbursement by June 30, following the end of the prior plan year; the plan year ends on Dec. 31. Any unused balance on your FSA will be forfeited.

Health Care FSA (HCFSA)

The health care FSA (HCFSA) covers copays, deductibles, coinsurance, prescriptions, dental care, eye exams, and other eligible health care expenses.

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How the HCFSA Works

You set aside pre-tax money through payroll deductions up to IRS limits, which are announced annually.

  • The HCFSA maximum contribution limit will likely increase from $3,200 for 2025.*
  • You determine your HCFSA contribution during new hire and open enrollment, and you can’t make changes during the year unless you experience a qualifying life event.

After you enroll, you’ll receive a convenient HCFSA debit card with funds available immediately. Throughout the year, you can use your HCFSA to pay for eligible medical, dental, vision, and prescription drug expenses, including deductibles, copays, and coinsurance.

You may need to submit documentation of your payments, so make sure to save your receipts clearly marked as paid.

*$3,200 is the contribution limit for 2024. The contribution limit for 2025 will not be finalized until it is officially released by the IRS.

Eligible Expenses

In general, eligible health care expenses are those relating to expenses incurred during the plan year (including the two-and-one-half month grace period). You incur an expense on the day the service is provided or the supply is received, not when you are billed or when you pay for it.

You can access a complete list of eligible expenses in IRS Publication 502.

Always keep your receipts, clearly marked as paid, as proof your expenses were eligible for IRS purposes. You may be asked to submit them for verification.

Claims & Reimbursements

Get Reimbursed for Out-of-Pocket Payments

If you want to get reimbursed using your HCFSA funds for an eligible expense paid out-of-pocket, you can file a manual claim for reimbursement by completing and submitting the HCFSA Claim Form.

Automatic Reimbursements with a Hertz Medical Plan

If you are enrolled in a Hertz medical plan, any eligible medical expense balance that is not paid by your Hertz medical plan will be reimbursed automatically from funds in your HCFSA.

  • Remember, you can use your HCFSA debit card to pay for dental, vision, and prescription drug expenses, but not for medical expenses.
  • To opt out of automatic reimbursements from your HCFSA, complete the Automatic Reimbursement Opt Out Form.

Direct Deposit Reimbursements

To save time and avoid paper checks, you may choose to have your FSA reimbursements made by direct deposit into your bank account. To set up direct deposit, simply complete and submit the Direct Deposit Authorization Form.

Dependent Care FSA (DCFSA)

The dependent care FSA (DCFSA) covers child care expenses while you are at work for children under age 13 or for other dependents who are incapable of self-care.

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How the DCFSA Works

The dependent care FSA (DCFSA) allows you to set aside pre-tax dollars to pay for eligible dependent care expenses for children under age 13 and for certain elderly or disabled dependents. The DCFSA is for child care or elder care expenses only; it is not for health care expenses for your dependents.

  • The DCFSA maximum contribution limits for 2025 are $5,000 individually, or up to $2,500 if married and filing separately.
  • You determine your HCFSA contribution during new hire and open enrollment, and you can’t make changes during the year unless you experience a qualifying life event.

After you enroll, your DCFSA funds are available as soon as you deposit them into your account. Throughout the year, you can use your DCFSA to pay for child care or elder care expenses while you and your spouse work or attend school.

You may need to submit documentation of your payments, so make sure to save your receipts clearly marked as paid.

Eligible Expenses

Examples of eligible expenses that can be paid for with your DCFSA include:

  • Child care
  • Babysitting
  • Before- and after-school programs
  • Nursery school
  • Preschool
  • Adult or senior daycare

You can access a complete list of eligible expenses in IRS Publication 503.

Always keep your receipts, clearly marked as paid, as proof your expenses were eligible for IRS purposes. You may be asked to submit them for verification.

Claims & Reimbursements

When you have a dependent care expense, you will pay the provider and then file a claim for reimbursement by completing and submitting the DCFSA Claim Form.

Direct Deposit Reimbursements

To save time and avoid paper checks, you may choose to have your FSA reimbursements made by direct deposit into your bank account. To set up direct deposit, simply complete and submit the Direct Deposit Authorization Form.

Documents

Provider

UMR
UMR

Phone: 833-584-3789