How do HSAs work with Justworks?
If a company is offering a high deductible healthcare (HDHP) plan, the company can also choose to make HSAs available to its employees, Justworks will then reach out to all eligible employees enrolled in an HDHP plan notifying them of the available benefit. Only employees enrolled in an HDHP plan can sign up.
Employees can decide to start contributing to an HSA directly from their Justworks account. When an enrollment opportunity is present, they will see a banner encouraging them to enroll upon logging in to Justworks. They can also enroll by going to the 'Benefits' tab on the left-hand side menu.
Employees will elect the amount they would like to contribute for the year, Justworks will then take the total amount and divide that amount by the number of remaining payrolls for the year. Justworks will then automatically deduct this amount from each payroll remaining in the year and remit the payment to BenefitWallet.
If you would like to offer HSAs for your employees and you offer a High Deductible Healthcare Plan you can login to Justworks and go to Benefits on the left hand side under HR. From there, select Add Benefits.
Then you’ll be directed to a learn page with more information on HSAs and then a second page where you can elect the amount you would like to contribute to employees HSAs.
You can select any amount from $0 up to the IRS maximum per month.
When can an employee sign-up for an HSA?
Eligible employees can enroll in an HSA at any time during the year, as long as the company is offering this benefit.
Can employees sign up later if they don't sign up during open enrollment?
Yes, as long as they are enrolled in an HDHP plan, they can sign up at any time while the benefit is being offered by the company.
What are the fees on an HSA?
Employers pay a fee of $5 per month per enrolled employee.
Accounts earn an annual interest of .05%.
Balances below $1,000, are charged a $3.50 monthly service charge. This fee is charged directly to the employee’s HSA account.
Balances of $1,000 and up are eligible to be invested in 26 different mutual fund options with expense ratios ranging from 0.03% to 1.11%. Employees who choose to invest will be charged a fee of $2.90 a month for administrative costs. These fees will be charged directly to the employees HSA account.
How do employees use their HSA funds?
Enrolled employees can set up their HSA account 2-3 days after the effective date of the HSA by registering with BenefitWallet. They will receive a BenefitWallet issued debit card within 7-10 business days or they can pay out of pocket and submit a claim.
In order to open and access their HSA account employees must pass a Certification Identification Program (CIP). For more information on CIP please visit our Help Center article.
When will employees receive their payment card?
Employees will receive their payment card within 7-10 days of setting up their account through BenefitWallet.
How are employees reimbursed an out of pocket expense?
If employees pay for a qualified expense out of pocket, they can log into BenefitWallet to be reimbursed in the online portal, they can withdraw funds from an ATM using the HSA debit card, or write themselves a check. Documentation is generally not required to substantiate a claim, but we recommend employees keep receipts for their records or in case it’s ever requested by the IRS. There is also no time limit to submit claims for reimbursement, if they choose to accumulate funds over time for a larger withdrawal.
Member and Website Support
Contact BenefitWallet at 1 877.472.4200
Lost or Stolen Debit Card
To report a lost or stolen debit card, please contact the BenefitWallet Service Center toll-free at +1 877.472.4200
Note: For security reasons, please do not include any personal or health-related information or documents when sending to this email address.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.