Employer FAQs

Question:
When are accounts considered established?
Answer:
Accounts are typically considered established when they are funded (i.e. when the first contribution has posted). Per the IRS, State trust law determines when an HSA is established. IRS Notice 2008-59: General HSA Guidance Q&A 38 & 29.
Question:
What is the timeline for account opening?
Answer:
The timeline for account opening depends on the chosen enrollment method. Group Online Enrollment (GOE): approximately one business day after completed applications are submitted or approved; Electronic Enrollment: correctly formatted files will process within one business day; Paper Applications: generally open within two business days from the time they are received by HSA Bank. Enrollment files and applications must contain complete information as requested.
Question:
What is a Section 125 plan?
Answer:
A Section 125 plan is also referred to as a Cafeteria Plan. It allows deductions from employee paychecks on a pre-tax basis for certain types of healthcare benefits. Consult your tax or business advisors for more information on setting up a Cafeteria Plan.
Question:
What is the difference between Employer, Pre-tax and Employee contributions?
Answer:
Employer contributions are made by the employer on the employee's behalf. Pre-Tax contributions are a deduction from the employee's paycheck as requested by the employee. Pre-tax HSA contributions lower your FICA, state and federal unemployment obligations, and payroll figures for Workers Compensation insurance. The employer must have a Section 125 Cafeteria plan or Premium Only Plan (POP) in place in order to facilitate pre-tax payroll deductions. Employee contributions are made by the accountholder on an after-tax basis.
Question:
What is the daily limit for Group Online Contributions (GOC)?
Answer:
The daily limit is the amount of money that you are allowed to move via GOC in a given day. For example, if you make a contribution of $100 monthly for 30 employees, your daily limit must be at least $3,000 to ensure that the total contribution will process.
Question:
When can my employees expect to receive debit cards and/or checks?
Answer:
Checks and debit cards are mailed within five business days of account opening.
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