How Do I Renew my Company's FSA Plan?
In order to continue offering employees Flexible Spending Accounts (FSAs), administrators must renew their FSA plan near the end of their plan year. The renewal must be completed before the 15th of the month their plan year ends, and will be made available for administrators to sign off on the 28th of the month prior. If the employer misses the renewal period, the effective date of the FSA cannot be changed retroactively. If you do not want to renew the FSA, then there is no action that needs to be taken.
For example, assume a company's FSA plan year ends on 12/31:
- The company's primary administrator will be able to log in to Zenefits and renew the plan starting on 11/28.
- Zenefits will also remind the administrator to renew the plan by sending email reminders on 11/28, 12/5, and 12/10.
- Company FSA renewal must be completed by 12/15.
After the employer completes renewal, eligible employees (employees being offered benefits) will receive an email that reminds them to renew or cancel their current plan. Using the example above:
- Employee reminder emails should be sent on the 15th and 20th of December.
- Employees will have until 12/25 to complete their enrollment.
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