1. Implementing Benefits
  2. Examples of Rate Start Date for Flexible Spending Account Plans

Examples of Rate Start Date for Flexible Spending Account Plans

This topic provides examples for these rules that you typically use to determine the rate start date for flexible spending account plan (FSA) enrollments.

Here are the rules:

  • First of pay period preceding first check on or after event

  • First of pay period preceding first check on or after elections

  • Pay period start, before first check, on or after cover start

These date rules are available in the Rate Start Date list in the Enrollment step when you create a benefit plan.

When you select a date rule, consider the enrollment rules of your enterprise. For example, if your enterprise has a waiting period before enrolling new hires in an FSA plan, you might want the rate to start on a date no earlier than the coverage start date. You do this so that the rate element is included in the first pay period of the first check date.

The examples in this topic assume that you want to configure an FSA plan for workers on biweekly payrolls.

First of Pay Period Preceding First Check on or After Event

Example: When the worker makes the required elections for FSA, you want the FSA rate to start on the first day of the pay period that precedes the first check date. The date can be on or after the event date.

A worker makes elections on November 14. The first check date after the event date is on November 28. If you use this date rule, the rate starts November 10.

First of Pay Period Preceding First Check on or After Elections

Example: When the worker makes the required elections for FSA, you want the FSA rate to start on the first day of the pay period that precedes the check date on or after the election date. The worker can make elections throughout the month.

A worker makes elections on November 24. The first check date after the elections is December 12. If you use this date rule, the rate starts November 16.

Pay Period Start, Before First Check, on or After Cover Start

Example: Your enterprise enforces a waiting period of 30 days for enrolling new hires into the FSA plan. You want the FSA rate to start on the first day of the pay period that precedes the date of the first pay check on or after the enrollment start date.

You hire a worker on November 1. The worker makes elections on November 12. In this case, the enrollment start date is December 1. The first check date after the enrollment date is December 18. If you use this date rule, the rate starts November 30.