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HomeMy WebLinkAbout4.e. Transfer/Loan Flexble Spending Account , + ' CITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCfL MEETING DATE: October 18, 1994 AGENDA ITEM: Transfer/Loan - Flexible Spending Account AGENDA SECTION: Consent PREPARED BY: Jeff May, Finance Director AG�NDA ��� � �� ATTACHMENTS: Copy of Purchase Order APPROVED BY: Attached you will find a purchase order with a request for funds to be paid to the Flexible , Spending Checking Account for the City of Rosemount employees for the shortened plan year 10/'1/94 to 12/31/94. These funds will be used to cover potential overages in that account. We are addressing a 3-month period only as we are currently in the process of switching our plan year to a calendar year beginning 1/1/95. Once again, entering the new plan year, we are facing the same federal law that requires the employer to set aside a sufficient amount of dollars to cover all claimed expenses throughout the plan year, even though the amounts may not have been withheld from an employee afi the time that the claims are made. The amount being requested is the total amount that wi11 be required to cover all deposits made by employees during the upcoming plan year. As we have done in the past, when the money is withheld from the employee's payroll checks, it will be deposited into the General Checking Account to reimburse that account for the funds that were forwarded to the Flexible Spending Checking Account. We have done this for the Iast four years and this process has worked very well in handling the Flex Account. RECOMMENDED ACTION: . Approve a transfer of S 1,770.00 from the General Fund to the Flexible Spending Checking Account on a temporary basis, to be paid back through employee withholdings as the withholdings occur. COUNCIL ACTION: ' PURCHASE ORDER . Vendor #: P.O. # 2 7 6 3 4 �il� o�C�J�,osemouni . 2875 145th St. W. • PO Box 510 P.�. �ate 1 J't�-� Phone (612) 423-4411 (�JeW ❑ FAX (612) 423-5203 Rosemount, MN 55068-0510 � —1 Si n re �C � � � �JS��.�..��' � � . -ro Dept. Head Sig: �G�G.g�c 5���h���,t�. htCw�._ - if applicable � � Administration Sig. if applicabie SOLID SHADED AREAS FOR FINANCE USE ONLY � G� Return Check to i • � • � I� ! � � . s � � • � � � cw..� �J << ���/ � �a�3,�4 , Ft.,�c �P�.�-- `le�.� .O�is•� �s��-� � 3 �;�h� ( 3 l- 13r3� 1 ,�7�.�� 81v� Minn. Tax Exempt Status No. 97�7275 Fed. Tax No. 41-6005501 I ., _ ✓- __. _._.., -_ �.. - . - _ - �.. _ -._ . - -