What are the employer fees for LPFSAs?
Zenefits charges companies a base annual servicing fee of $150 for the plan year and a monthly fee per employee enrolled in a LPFSA and/or Dependent Care FSA. The two contract options are: Annual ($4/employee per month, prepaid for the year) or Month-to-Month ($5/employee per month, monthly payments). Companies who are currently enrolled in LPFSA will be able to choose either contract option upon renewal of their current plan.
Annual Contract Details
- Annual Cost: $150
- Monthly Cost: $4 per employee, with a five employee minimum
- The 12 months (base and employee cost) are paid in advance at the start of the contract. This plan is based on a calendar year.
- The total of the plan year fee and the monthly minimum will be debited from the company account on the first business day after the contract is signed.
- If additional employees enroll in the middle of the plan-year, Zenefits will prorate the cost of the extra employees for the number of months from the employees' LPFSA start date(s) through to the end of the plan year.
Month-to-month Contract Details
- Annual Cost: $150
- Monthly cost: $5 per employee, with a five employee minimum
- The $150 fee and first month's payment is charged on the first business day after the contract is signed.
- Monthly payments are debited on the first of each month. If additional employees enroll, they will be added to the next monthly payment.
- For example, the cost for a company with 10 LPFSA enrollees using the Month-to-month contract throughout the duration of their plan year would be: 1st month of the plan year (even for a partial plan year): $150 annual fee + $50 ($5 per employee).
- Each month for the remainder of the plan year: $50.
- Note the servicing fee for both contracts is based on the plan year for the LPFSA (defined during initial setup). For contracts that don't begin and end on the same dates as the plan year, Zenefits will charge the servicing fee twice: when the contract starts, and at the start of the plan year.
- For example, assume an LPFSA with a plan year is Jan 1 - Dec 31st, and a contract that begins on October 1st of one year and ends on 9 /30 of the next. Zenefits will charge the service fee on October 1st (when the contract starts) and again on Jan 1st.