Employee FSAs

This guide provides helpful information on the underlying features and rules behind Health Care and Child & Elderly Care FSAs.

When do my Health Care FSA funds become available?

The full annual contribution amount for a Health Care FSA is preloaded and immediately available for use at the beginning of the plan year. Employees pay back the funds incremen... Learn more

How are FSA contributions deducted?

Employee FSAs are funded through employee deductions and company contributions. Actual deductions per employee will vary based on start dates, plan definition, and contribut... Learn more

What's the difference between Health Care and Child & Elderly Care FSAs?

Here are the primary ways a Health Care FSA and a Child & Elderly Care FSA differ: Health Care FSA Child & Elderly Care FSA Funds are preload... Learn more

What are eligible Child & Elderly Care FSA expenses?

Child & Elderly Care FSAs can be used to pay for care provided to qualified dependents so that the employee can continue working. Here are some examples of eligible expenses. Pl... Learn more

What are qualifying life events for FSAs?

Employees who experience one of the qualifying life events (QLE) in this list can either enroll in an FSA outside of the normal eligibility window (if they don't already have on... Learn more

What are the contribution limits for FSAs?

Employees elect separate annual contribution amounts for Health Care or Limited Purpose FSA and Child & Elderly Care FSAs ( aka Dependent Care FSAs) up to the annual IRS limits.... Learn more

What are the tax advantages of using an FSA?

FSA contributions are excluded from employees' gross taxable income, so employees pay less in taxes, even though they make the same amount. Claim Credit for Child and Dependent... Learn more

What happens to FSA funds once the plan year ends?

After the end of a FSA plan year, there is a runout period in which claims can still be submitted for expenses during the plan year. Depending on how the plan was set up and the... Learn more

Which employees are eligible to enroll in an FSA plan?

Most full-time employees are eligible to participate in an FSA, so long as their employer offers health insurance. Employees do not need to enroll in a health insurance plan to ... Learn more

Why do I need to substantiate my FSA expense?

Employees who use their Zenefits Card at a merchant who has not implemented an inventory information approval system (IIAS), which automatically identifies FSA-eligible expenses... Learn more

What is an FSA Rollover?

FSA rollovers are a carryover of excess funds into the next plan year. Rollover plan end types only apply to Health Care  FSAs. Employees do not need to enroll for the new plan ... Learn more

What is an FSA Extension?

2.5 Month ExtensionA 2.5 month period employees have to use funds from the previous plan year. The 2.5 Month Extension can apply to both Health Care and Child & Elderly Care  FS... Learn more

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