How do FSAs work with Justworks?
If a company chooses to make FSAs available to its employees, Justworks will reach out to all eligible employees notifying them of the new benefits and of their open enrollment period. Employees can only sign up during the open enrollment period.
Employees can decide to start contributing to an FSA directly from their Justworks account. When an enrollment opportunity is present, they will see a banner encouraging them to enroll upon logging in to Justworks. They can also reach the workflow by going to the 'Benefits' tab on the left-hand side menu.
Justworks will then take the total amount an employee would like to contribute towards their FSA and divide that amount by the number of remaining payrolls for the year. Justworks will then automatically debit this amount from each payroll and remit the payment to Optum Financial.
If you would like to offer FSAs to your employees you can do so by logging into Justworks and selecting the Benefits tab under HR on the left hand side menu.
From there you can select which employees are eligible for the benefit.
Once you have confirmed your company's enrollment, you will receive a confirmation email and the FSA tile will show as an active benefit under the Benefits tab.
When can an employee sign-up for an FSA?
Since FSAs run along the calendar year, FSA open enrollment usually occurs about a month or so before the start of the new year. The open enrollment period is only time to sign-up for an FSA.
Separately from general open enrollment, employees can enroll during open enrollment when they are newly joining the company.
Can employees sign up later if they don't want to during open enrollment?
Employees who would like to enroll in either or both FSA accounts (Healthcare and Dependent care) must sign up during the open enrollment period.
How do my employees use their FSA funds?
Employees enrolled in a Healthcare FSA can use their Optum Financial issued debit card or they can pay out of pocket and submit a claim.
Employees that are enrolled in a Dependent Care FSA must pay for the expense with personal funds and request reimbursement online or through the app. Employees can not use an Optum Financial Payment Card to pay for DCFSA expenses. Expenses are eligible for reimbursement after the care is provided and employees should keep receipts.
How do employees submit a claim to Optum Financial?
There are a few different ways employees can submit a claim to reimburse an out-of-pocket expense, pay a provider directly, or substantiate an expense made with the Optum Financial debit card (if necessary). This tutorial video walks employees through the steps of submitting claims to their Optum Financial account using the portal or app.
Contacting Optum Financial
Optum Financial’s Customer Service is open 24/7 365 days a year. If you or your employees have any questions or need to contact Optum Financial for help on their account, they can call 1 (877) 292-4040 or email firstname.lastname@example.org .
For more information and links to download please visit their mobile app page here.
What are the fees on an FSA?
Employers will pay a fee of $5 per account, per month. So employees enrolled in an FSA and DCFSA will cost $10 per month.
Employees will not be charged for their FSA accounts.
Does my FSA have a carryover or grace period?
No, the Justworks FSA plan does not have a carryover or grace period.* At the end of the plan year all unused FSA funds must be forfeited per IRS guidelines.
*Please note: If your employees were enrolled in a Flexible Spending Accounts (healthcare FSA and/or dependent care FSA) through Justworks in 2021, we are going to be doing a one-time carryover of unused balances into 2022. This carryover will only be available to members who are enrolled in a corresponding FSA plan for 2022. We do not anticipate carrying over unused 2022 funds into 2023 at this time
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.