HR Fast Facts: What Is the FSA Start Date for New Hires?
The flexible spending account start date for new hires varies with every employer and their benefits administrator, but here are some examples.
The flexible spending account (FSA) start date for new hires varies with every employer and their benefits administrator. For some employers, a new hire’s effective date of FSAs is their start date. However, it could also be the first day of the payroll period after the employee’s enrollment.
Below is how FSA start dates look like for companies that administer benefits through Zenefits — an HR, benefits, and payroll platform.
Zenefits FSA start dates for new hires
When a new employee with a mid-month hire date enrolls in an FSA within 30 days of that date, their FSA will start on the first of the month following their hire date. New hires with a hire date of the first or last date of the month also have 30 days to enroll, but their FSA’s start date will depend on the actual hire date.
- An employee hired on January 1 will have until January 31 to complete the FSA enrollment flow. Once the employee completes enrollment in Zenefits, they will have a plan effective date of January 1.
- An employee hired on January 31 will have until March 1 to complete the FSA enrollment flow. Once the employee completes enrollment, they will have a plan effective date of February 1.
