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Do my monthly FSA fees increase for additional employees?

After your first monthly payment (which is based on the number of employees who actually enroll at the plan's start), your subsequent monthly payments are based on the maximum number of employees enrolled on the plan at any time in the year.

If additional employees enroll later in the year, the number of seats increases, and Zenefits charges for each additional seat.

  • The total number of seats will either increase or stay the same, but never decrease.
  • For each employee who leaves, a seat is vacated. This seat can be filled by another employee who enrolls later.

Let's assume that a company starts the plan year on Jan 1st with 7 seats. On March 1st, 3 more employees start, and one employee leaves the company (and cancels for March 1st). the number of additional seat is (3-1) = 2, so:

  • On an Annual Contract, the cost of the additional seats is ($4 x 2 x 10 months) = $80, which is charged on March 1st to prepay the additional monthly costs for remaining months in the year.
  • On a Month-to-Month Contract, the payment is ($5 x (7+2)) + $15 = $45 for March.
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