Health Savings Account (HSA)
Funding
&
Invoicing
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__
© 2014 WageWorks, Inc. All rights reserved.
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Agenda
HSA Funding & Invoicing
• Invoice for Administrative Fees
• File and Funding Process
• Unopened Account Funding (Pending Contributions)
• Email Notification
• Online Funding Report
• Sample Funding Report
• Appendix: Sample funding timeline, Pending Contributions scenario
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Invoice for
Administrative Fees
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Administrative Fees
 Healthcare (FSA, HRA, HSA) admin fees are all billed on one invoice
 Invoices are sent electronically on a monthly basis
 Issued on the 1st of the month for the prior month (February 1st for January)
 Participation is determined on the 20th of the month
 Payments are due 30 days from invoice
 The Invoice Report on Employer Site will provide participant details
 ACH Debit
• Email notification sent 2 days prior to ACH pull
• Ensure bank has removed filters and both WageWorks ACH IDs are listed
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HSA Funding Process
©2013 WageWorks Inc. All rights reserved.
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HSA Funding Process
 No prefund or up front funding is required.
 When the funding file is sent to WageWorks the grand total of the
contributions and deductions applied to the open HSA accounts
will be debited from your bank account or the ACH Credit/Wire
transfer is due to WageWorks on the next business day.
 Funding Notification
• Sent via email from [email protected] - check your
spam filters
• More than one contact can receive the notification
 The amount is then applied to the employee accounts on the third
business day.
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HSA Funding Model – BNY Mellon
Day 0
•
•
•
•
Submit Funding (FND) record
If submitted by 2:00 CST will process same day
‘Funding Date’ determines processing date (if later than date of file load)
Files posted after the ‘Funding Date’ process when received
Day 1
• Funding Report generated
• Captures only funds that were able to post to open HSAs
• Email notification to client
Day 2
• Funding due to WageWorks (WW will pull funds via ACH Debit)
• Funds visible on WageWorks’ website
• Funds are available in the account holder’s HSA (on Card in evening)
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HSA Funding Process
 Note the payroll or funding date within the file drives the process and the
records will start processing as of that day. If the file has a future payroll date
for an employee the funding process will not start until that day.
• It is important to ensure that HSA deductions have a funding date within the current tax
year for the targeted HSA plan. Do not send a funding date prior to the start of the HSA
plan year (i.e. 12/29 for a January 1st contribution) as this will cause the contribution to
appear in the previous year’s tax records.
 The account activity report will show the grand total of contributions made
by the employer only. Any payments, rollovers or post tax contribution
information made by the employee is private and will not appear on the
reports.
 Where possible, the Employer/Program Sponsor should not deliver any
Funding (FND) records until the employee has addressed any vetting issues
with the custodian and their HSA account is opened.
 Sample HSA funding timeline available in Appendix
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HSA Funding File Corrections
 If Client sends a negative HSA Funding record amount, the record will reject.
• All reversals must be requested with the WageWorks Relationship Manager and
processed by the WageWorks HSA Operations team
 The entire funding record amount must be reversed
• Partial amounts can not be reversed
• The reversed amount will appear as a credit on the next funding report, reducing
the amount you are charged for that HSA contribution cycle
 Example: A $250 funding record is sent. The amount should have been $175 as that
was what was actually taken from payroll
• An adjustment will reverse the $250 record
• A new record for $175 will need to be sent
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Pending & Expired
Contributions
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Pending Contributions
 This option is to address an HSA Funding record received for a participant
when, at the time of receipt, the participant’s account has not been
opened by the custodian (application not yet completed).
 You have the option as the Program Sponsor to have your plan set up to
not reject a HSA funding record if the account is not yet open. Instead
funding goes into a PENDING status and will be automatically posted when
the HSA account is OPENED by the employee.
 Once the participant account is open all pending contributions will be
applied and included on the next day’s HSA Contribution & Funding report
for the grand total of the previously pended amount.
*Sample Pending Contribution timeline available in Appendix
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Expired Contributions
 According to IRS Regulations, in order to apply a contribution to
a HSA in a given calendar year, the HSA must be opened before
12/31 of that same year.
 All pending contribution records in the WageWorks database
with a Funding Date prior to 1/1/2015 will be expired shortly
after 1/1/2015 if the HSA is not open as of 12/31/2014.
• This process will occur at the beginning of each calendar year.
 If an HSA participant has pending contribution records in the
WW database at the time of termination and the account is not
open, those contributions will also be expired.
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HSA Pending & Expired Contributions Report
 This report should be used for several purposes:
• Review pending contributions and remind your employees to
complete the HSA application in order for those contributions to
post.
• Review expired contributions and determine if payroll deductions
need to be returned to the participant on a post-tax basis.
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Email Notification
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Sample HSA Funding E-mail
From: [email protected]
Sent: Thursday, January 08, 2010 1:01 AM
To: Mr. Johnny Doe
Cc: [email protected]
Subject: HSA Contribution Funding Report: 12345/ Sample Company Inc.
--------------------------------------------------------------------------------------------------------Dear Valued Health Savings Account (HSA) Client:
Please be advised the HSA Contribution Funding Report is now available on the WageWorks Employer website at
https://employer.wageworks.com. The HSA Contribution Funding Report will reflect the status of your employees'
most recent contribution activity at the Custodian.
Please remit the Total Funding Due amount located on the HSA Contribution Funding Report within 1 business day.
If funding by ACH Debit, this amount will be automatically deducted from your designated bank account.
As a reminder, if the Total Funding Due amount is negative, no funding is needed. On the next HSA Contribution
Funding Report, that amount will be credited and subtracted from the Total Funding Due for that settlement date.
Please contact WageWorks at 1-866-924-3967 (1-866-WageWorks) if you have any questions.
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‘HSA Contribution
Funding Report’
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Generate the HSA Funding Report
Each funding date is listed in the drop down box relates to the “Funding Date” within the
file (typically payday minus 2 days). The report shows the employee accounts that the
funds were applied to and/or rejected. The report will also show the total amount due.
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Sample HSA Funding Report
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Appendix
©2013 WageWorks Inc. All rights reserved.
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HSA Funding – Sample Timeline
Tuesday
24th
• Run payroll
• Create FND with HSA
contributions (using
25th as ‘Funding Date’)
• Load FND file to
WageWorks (or early
Wednesday)
Wednesday
25th
• Load FND to
WageWorks early in
the day
• WW sends
contribution records to
BNY Mellon to post
• Contributions for yetto-be-opened accounts
are set to ‘Pending’,
not sent to BNY
Thursday
26th
• BNY reports to WW
what was posted and
rejected (due to closed
account)
• Funding Report
generated, captures
Posted, Pending, and
Rejected contributions
• Email notification of
report sent to client,
advises funds will be
pulled the next
business day
Friday
27th
• Employee payday
• WW debits $ from
client bank account,
equal to the total $
amount of
contributions POSTED.
• Contributions post on
WW site, visible to
employees
• HC Card balance
updated late in day
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Pending Contributions Scenario
• 9/25 – FND record with Jane’s $100 contribution loaded to WageWorks
• 9/25 – WW system checks status of Jane’s HSA, finds that she has yet to complete the
application and open the account. Her $100 is classified as a Pending Contribution and
is not sent to BNY to post.
• 9/26 – Funding Report generated, indicates client owes for 9/25 FND file’s total
contribution $ amount, less Jane’s $100 and any other pending or rejected amounts
• 9/27 – WW debits client bank account for $ amount detailed on Funding Report; funds
visible to employee on WW site
• 9/27 – 10/16 – Jane still does not complete HSA application, another $100 contribution
is loaded via FND and set to Pending.
• 10/17 – Jane completes HSA application, BNY Mellon opens account
• 10/18 – WW receives open account status, sends Jane’s $200 in contributions to BNY
to post (DAY 0)
• 10/21 (next business day) – Funding Report generated, indicates that client owes $200
for Jane’s now-posted contributions (DAY 1)
• 10/22 – WW debits client bank account for $ amount detailed on Funding Report;
funds visible to employee on WW site (DAY 2)
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©2013 WageWorks Inc. All rights reserved.
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