FSA Billing Process
Employees elect their annual FSA contribution at the beginning of the plan year. This annual contribution amount is broken down over 24 pay periods and the elected amounts will need to be deducted from employees' paychecks. Medical FSA funds are available to employees in full at the beginning of the plan year but Dependent Care FSA funds are only available to employees as they are deducted from their paychecks.
The elected contribution amount will remain with the company until the employee spends the funds. For example, an employee could elect to contribute $1200 for the year, but your company would not be deducted for any of these funds until the employee spends $20 for a co-pay. The company will be debited on a daily basis as employees use their funds.
You are able to view and manage these employee transactions from your administrator dashboard by selecting your Flexible Spending Account app and then selecting the Invoices option.
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