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 new 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 select 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 and remit the payment to Optum Financial.
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.
From there you’ll be directed to a learn page with more information on HSAs and then a second page where you can select 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.
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 a month per enrolled employee.
There is no fee to employees for maintaining their HSA interest-bearing account during active employment. Upon termination of employment, a monthly fee of $3.00 will be deducted from their HSA balance to maintain the account. At that point, the $5 monthly fee that is paid by the employer will no longer be deducted.
Additionally, Optum Financial provides a full range of investment options in the Investment Center of the employee portal. Members with a minimum balance of $1,000 will have the option to open an investment account and invest any amount over the minimum required cash balance in a suite of mutual funds. There is a yearly $18 fee for these investment accounts. This fee is charged directly to employees' accounts on the first business day of the following month after opening the investment account.
For example, if an employee makes their first investment trade on the 7th of April, they will be charged on the first business day of May.
The $18 yearly fee will be charged on the anniversary date of opening the investment account. This fee can not be prorated.
How do employees use their HSA funds?
Employees can set up their HSA account on Optum Financial. They will receive a welcome packet with the debit card within 5-7 business days of successfully opening their account to use on expenses. They may also pay out of pocket and submit for reimbursement through the account once it’s opened.
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 a welcome packet with the debit card within 5-7 business days of successfully opening their account.
Employees who have a Optum Financial commuter debit card will be able to use the same card for HSA payments.
How do employees get reimbursed for an out of pocket expense?
Employees can log into Optum Financial to reimburse themselves in the online portal, or they can withdraw funds from an ATM using the HSA debit card. 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. Optum Financial offers a tool called, “HSA Save-It!” within the portal that allows them to store receipts and documentation. There is also no time limit to submit claims for reimbursement if they choose to accumulate funds over time for a larger withdrawal.
Can employees transfer or roll over funds from their previous HSA provider?
Yes, as long as the previous HSA is open, they can rollover the funds to their Optum Financial HSA. They will need to fill out this form and fax it to 877-851-7041 along with the most recent statement from their previous HSA.
Can I update employer HSA contributions mid-year?
Employers cannot change employer HSA contributions mid-year. They can only do so when initially offering the HSA via Optum Financial, and during HSA renewals prior to the next calendar year.
Contacting Optum Financial
Optum Financial’s Customer Service is open 24/7 365 days a year. If you have any questions or need to contact Optum Financial for help on your account, you can call 1 (877) 292-4040 or email email@example.com .
You can also get more information and submit your claims through the Optum Financial app. For more information and links to download please visit their mobile app.
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.