Can Zenefits take over our FSA mid year?

All mid-year takeovers should follow the same timeline as a new group signing up for an FSA. You must sign up by the 15th of the month in order to have a first of the next month effective date.

The directions below do not apply if:

  1. Your company's previous plan ends before the new plan with Zenefits begins
    OR
  2. Your company wants to roll over FSA account balances for Zenefits to administer the previous plan's grace period / rollover /runout period.

Mid-Year Takeover Process

  1. Set up your FSA plan through the Zenefits dashboard as if it were a new plan but stop at the Summary section.
  2. If your previous plan was set up with an employer contribution amount for FSA /DCA, the new plan in Zenefits should reflect the same contribution amounts.
  3. Around the 10th of the month, send a memo to your workers in order to establish a full two week "blackout period" before their Zenefits effective date. The blackout period should take place between the 15th and the 31st.
  4. Once the blackout period is over, request a final Account Balance Report from the previous vendor. This report should contain the actual balances to be loaded onto your workers' cards. Make sure all enrollees  have entered their bank account information, then contact Zenefits Customer Care with this information.

Documents to Provide

  • Current plan start & end dates
  • Current plan end details:
    • Include any grace period, rollover, or no carryover option
    • If rollover: How much can employees roll over?
  • Employer match/contribution amounts (if any)

Enrollee Backfill List Checklist

  • Enrollee annual elections
  • Individual plan start dates for enrollees
    • Some employees may have been hired after the company's plan started and will, therefore, have a different plan start date.
  • All enrollee bank account numbers, routing numbers, and specification between checking or savings accounts.
    • This is required for enrollment so that if employees file claims they can be reimbursed via Direct Deposit.

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