We here at PeopleKeep understand there may be times when business circumstances change, and you may need to cancel your account. When you do, can elect to have a run-out period on your account.
Why is there a run out on my account?
The run-out period simply gives employees additional time to gather and submit documents and receipts for medical expenses incurred during the plan year. This will ensure that your employees can best utilize their HRA, and also give you time to pay out any final reimbursements that might be due.
As the administrator you can decide the length of your runout period (0, 30, 60 or 90 days).
Do employees accrue more allowance during the run-out period?
No. Employees are able to use the allowance they have already accrued during the year, but during the run-out period, they would not accrue anymore of a balance.
What am I charged during the run-out period?
During your run-out period, you will be charged the company base account fee and for any active and eligible employees.