Employers need to know about one change in particular: the bill temporarily amended FSA guidelines to provide employees with another cashflow source. Executives at financial services company, HealthEquity, said it’s in advisers’ best intersts to bring their clients up to speed on the changes now.
Under the changes, employees with FSA accounts, have until the end of 2021 to spend their funds. That includes employees who were laid off during the pandemic. The one-year extension provides employers with two options: unlimited carry-over of funds; or a 12-month grace period. Employers should choose based on whether or not their workforce also has access to an HSA.