Startup Questions Remain

The extension of the FSA open season occurs as many agencies continue to work to revise their payroll systems to process the necessary payroll deductions. Several have indicated they won’t be ready by the formal program startup date of July 1. Some have said they won’t be able to start until August or September, while the Veterans Affairs Department and Government Printing Office have said they won’t be able to start until calendar year 2004. For those agencies able to launch with an effective date of July 1, payroll withholdings will begin in the second pay period of July. Participating employees will be able to submit for reimbursement of eligible expenses incurred only after their agency’s launch date. Employees also should check with their personnel office regarding the launch date applying to them.