Adding a Flexible Spending Account (FSA) Plan
Article on what information and steps are required in adding an FSA plan in iSolved
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FSA plans are employee-paid pre-tax benefit plans regulated by the IRS. FSA Medical plans can be applied towards medical, dental, and vision expenses. FSA Limited plans can only be applied to dental and vision expenses, and are usually paired with a health savings account (HSA) plan. FSA plans do not carry over from year to year.
When adding an FSA plan, there is some required information to set the plan up correctly and to generate accurate deductions. This article will walk you through the steps of providing the necessary information needed to add an FSA plan in iSolved.
1. Basic Plan Information
When adding an FSA plan, we need some basic information in order to start building the plan.
- Is this an FSA Medical, FSA Limited, or FSA Dependent Care plan?
- What is the plan name?
- What company is the provider?
- Is there a plan ID number (primarily used in the system for carrier feed integration)?
- Is this plan COBRA eligible?
- Is your plan considered Creditable Coverage?
- Does this plan include RX Coverage?
- Is this plan Self-Funded?
- Is this plan considered a Conditional Offer of Coverage for the Spouse?
- Does this plan qualify as ACA Minimum Essential Coverage?
- Does this plan qualify as ACA Minimum Value?
- Is Proof of Insurability required?
2. Dates and Schedule
This next section covers the effective dates, deduction schedule, and any probation periods associated with the plan.
- When is the plan start date?
- Are deductions based on the Pay Date or the Pay Period End Date?
- Is there a new hire probationary period? ex. First Day of the Month Following 30 Days After the Hire Date
- Is there a Termination Rule? ex. Last Day of the Month Following 0 Days After Termination
3. Pay Items and Options
This section will determine how the deductions will appear in payroll records as well as which employees and dependents are eligible.
- Do these deductions need to be mapped to a specific GL account for reporting purposes?
- Is a PCP required to enroll in the plan?
- At what age does a dependent age out of the plan? ex. Age 26 - Age as First of the Month Following Birthday
- What are the Eligibility Rules associated with the plan? ex. All Full-Time Internal Employees