On September 1, PayFlex Systems, Inc. took over as the new TexFlex flexible spending accounts (FSAs) program administrator from WageWorks. This change does not affect how much participants can contribute, eligible expenses or other program rules.
Filing claims for PY21 expenses
If participating employees incurred expenses before August 31, but didn’t file claims with Wage Works, you will now have to submit their claims to PayFlex. The last date to file claims for Plan Year 2021 is December 31.
Carryover funds move from WageWorks to PayFlex
Health care and limited-purpose FSA carryover funds from Plan Year 2021 will be available with PayFlex in mid- to late-September, following a blackout period – a time when the carryover funds are transferred to the new plan year and are unavailable to the participant.
Dependent care FSA carryover funds will be available after December 31, 2021. We will provide more information on the dependent care FSA carryover funds by the end of September.
If you are contributing to your accounts in PY22, you can file claims to use available PY22 funds during the blackout period. If you want to use carryover funds or if your claim exceeds their PY22 balance, you will need to wait to file the claim after the blackout period, when carryover is released. Claims filed against PY21 carryover will be denied during the blackout period.
Carryover maximums return
In response to the COVID-19 pandemic, the federal government temporarily allowed unlimited carryovers for all FSAs from Plan Year 2021 to Plan Year 2022. This allowed all FSA participants to carry over all funds remaining in any TexFlex FSA on September 1, 2021.
The carryover minimums and maximums and grace period will be back in place at the end of Plan Year 2022:
- The health care and limited-purpose FSAs allow participants to carry over up to $550 in unused funds from Plan Year 2022 to Plan Year 2023. Any unused funds over $550 will be forfeited. For participants who do not re-enroll for the next plan year, the minimum carryover is $25. Participants who don’t re-enroll for the next plan year will forfeit any unspent health care or limited-purpose FSA funds over $550 or under $25.
- The dependent care FSA will not allow any funds to carry over. Instead, the 2½-month grace period will return. After August 31, 2022, participants can spend unused dependent care FSA funds on eligible expenses through November 15. Plan Year 2022 funds not spent by November 15, 2022 will be forfeited.
Participants must submit required documentation to keep cards active
It’s important for you to submit the required documentation when requested by the TexFlex administrator. If a health care or limited-purpose account holder does not substantiate their expenses as requested, their TexFlex debit card will be deactivated. PayFlex is now managing all unsubstantiated claims, including those from PY21 and earlier. Some participants with unsubstantiated claims from PY21 or earlier may get a new debit card from PayFlex that doesn’t work because it’s deactivated. You should contact PayFlex if they have questions about the substantiation process or a deactivated card.
Age requirement changing for dependent care FSAs
Due to the pandemic, in Plan Year 2021, TexFlex dependent care FSA participants could use FSA funds to pay for care for eligible children under age 14. In Plan Year 2022, the maximum age for an eligible child has changed back to under 13 years.
If a participant has a dependent care FSA for Plan Year 2022, their eligible expenses must be for a dependent who is:
- claimed by them as a federal income tax exemption,
- residing in their household, and
- age 12 or younger, or physically/mentally incapable of self-care.
In Plan Year 2022, dependent care FSA participants can file claims for eligible dependent children through the last day of the month in which they turn 13.
TexFlex commuter spending accounts (CSAs) are no longer available
The Employees Retirement System of Texas (ERS) is no longer offering the TexFlex commuter spending accounts (CSAs.) Below is important information about this change:
- Parking CSA participants have until December 31, 2021 to submit reimbursement requests for expenses incurred through August 31, 2021. They should submit all eligible reimbursement requests to WageWorks.
- If an employee has a balance of $10 or more in their transit or parking account after December 31, 2021, they will get a refund of those funds, less any applicable taxes, by January 31, 2022. Because CSA contributions were deducted from paychecks pre-tax, the refunds will be subject to tax. ERS and WageWorks will provide more information on the refunds in December.
If your employees have questions about their Plan Year 2021 CSAs, they should call WageWorks toll-free at (844) 884-2364 (TTY: 711).
Contact Information for support
- Health care, dependent care and limited-purpose FSAs: Participants can visit www.TexFlexERS.com or call PayFlex toll-free at (866) 353-9839 (TTY: 711), Monday through Friday, 7 a.m. to 7 p.m. CT and Saturday, 9 a.m. to 2 p.m. CT.
- Commuter spending accounts: Employees can log in into their CSA online account or call WageWorks toll-free at (844) 884-2364 (TTY: 711), Monday through Friday, 7 a.m. to 7 p.m. CT.
Source: Update Express (September 2021)