How to Use a Cafeteria Plan
- 1). Review a your company's cafeteria plan policy. See what expenses are eligible for reimbursement. Some companies, for example, permit you to pay for non-prescription drugs and medical supplies with your plan dollars -- others don't.
- 2). Try to estimate your annual out-of-pocket expenses for medical items and for child care. If your child is in daycare, for example, multiply the weekly charge by the number of weeks they are likely to be in the system -- don't forget to deduct weeks for holidays and vacations. For medical care, start with your insurance plan's annual deductible. If you commonly exhaust the deductible during the year, than include at least that amount in your cafeteria plan. If you don't, then try to estimate the amount you will spend on doctor's co-pays, along with out-of-pocket expenses for any drugs you take regularly. Add the total amount of your estimated yearly expenses you want to claim and divide it by the number of pay periods your company has in a year. This number is the amount that is going to be taken out of your paycheck every pay period.
- 3). Once you are in the eligible year and accrue an eligible expense, save your receipts for each covered expense. Get a reimbursement claim form from your human resources department. Make a copy of your receipts and either fax or mail the completed form and receipts to your cafeteria plan provider for reimbursement.