IRS Guidelines for the Consolidated Appropriations Act (CAA) 2021 and the American Rescue Plan Act (ARPA) 2021

Zenefits will provide a link to a page in the Section  125  portion of the Compliance link on the Company page within the Benefits Application.

The Company Admin will download a plan amendment template, fill out and sign it, and then upload it to the web (similar to the process executed for IRS  2020-29) for processing. To complete this process click the Benefits Administration App on your home page, navigate to the Company page from your main header, and select the Compliance link on the left hand menu. Once you have entered the Compliance page, you will find your plan amendment template in the Section 125  tile at the top of the page. Download the amendment, select any options (you may elect to choose any or all options available to you based on your current plan design) you would like, sign the document and upload it for processing.

If you need to review what selections you made after you've uploaded your signed amendment, you can do so by following these steps:

• Click on your Benefits Administration App
• Click  'Company' from the links at the top
• Click  'Compliance' from the links on the left
• Click 'Appropriations Act 2021 Plan Amendment'
• Click 'UploadedAmendment' to review the amendment you signed and which changes you selected to allow.

Once the signed document is uploaded, it will be sent to the the Zenefits Ops team for processing.

The Ops team will review the plan amendment to ensure the changes requested are in line with all requirements, and then will process the changes to your company setup. Once the plan changes have been made, they will be automatically sent to the processing system to update balances as necessary.

After all changes have been made in the processing system, you will receive a communication confirming completion of the request and they will be reflected accordingly in the Benefits Application and Mobile App.

Healthcare FSA: 

• With the new 2021 CAA  changes to allow for a full balance rollover, the Zenefits Carryover max can now be configured between $1 and $2750 ( 2021  plan max). 
• The provision to extend the benefit to terminated employees, allowing them to spend down their remaining balance will be supported.

Dependent Care  FSA: 

• With the new 2021 CAA  changes to the 2020 Dependent Care FSA to allow for a full balance rollover, the Zenefits Carryover max can now be configured between $1 and $5000 (2020  plan max). 
• With the new 2021 ARPA  changes to the Dependent Care FSA  annual max, Zenefits will support a $10,500  maximum for the 2021 plan year.
• With the new 2021 CAA  changes to allow for a full balance rollover, the Zenefits Carryover max can now be configured between $1 and $10,500 (2021  plan max). 
• Zenefits will support a one-time  election change to the 2021 Dependent Care FSA  without a qualified life event.
• With the new 2021 CAA  changes to allow for an employer to extend their Grace Period to 12  months , the Zenefits Grace Period Extension can now be configured at 2 ½ months or  12  months . 
• We will offer and support the processing change to the age limit for qualifying children from 13  to  14  for a plan year for which open enrollment ended before January 31, 2020,  and for any unspent funds from that plan year that are available (either by rollover or grace period) to the employee during the following plan year.

Your Consolidations and American Rescue Plan Act amendment may have been denied for one or more reasons during processing. Please review the reasons that an amendment would be denied below to see if your submission falls into one of those categories. If you do find that your amendment was submitted incorrectly, please download a new amendment from the Benefits website and resubmit your form to Zenefits.

1. You have requested to increase your Carryover amount but received a denial message: In order to increase your Carryover amount , you must have had that feature in your plan setup prior to the request. Meaning, if you either had not elected to allow your members to carryover funds prior to the IRS changes, or have your plan set to allow the Grace Period Extension, you may not increase your Carryover amount.
2. You have requested to extend your 2 1/2 month Grace Period and received a denial message: In order to extend your 2 1/2 month Grace Period, you must have had that feature in your plan setup prior to the request. Meaning, if you either had not elected to allow your members a 2 1/2 month Grace Period prior to the IRS changes, or have your plan set to allow for the Carryover, you may not extend your Grace Period.
3. You have requested to increase your Carryover amount and to increase your Grace Period: You can not elect to have both the Grace Period and the Carryover for the same Flexible Spending Account.
4. You have submitted an out dated or incorrect amendment: You must submit the current amendment in order to be processed. If you submitted an old amendment for previous IRS regulation changes, you must resubmit the correct amendment.