Is anyone willing to share their HSA plan Build and/or how the are tracking in Lawson. Here is what we are trying to do...
If an employee enrolls in the following medical plan, they can elect the below spending account(s) to go with it:
Current Core Medical (no changes to the current set up):
- Health FSA
- or Waive Health FSA
High Deductible Health Plan (HDHP):
- Limited FSA and HSA (EE & ER contributions)
- HSA only (EE & ER contributions)
- Waive both Limited FSA & HSA (assuming EE is not eligible to make or receive HSA contributions)
- Limited FSA only (assuming EE is not eligible to make or receive HSA contributions)
- Health FSA only (assuming EE is not eligible to make or receive HSA contributions)
Waive Medical
- Health FSA
- Limited FSA
- or waive all Health FSA/HSA options
Quick overview about HSA contributions:
There are IRS limits on how much you can contribute to an HSA – both EE & ER contributions go towards this IRS limit. Similar to a retirement account an HSA also has a catch-up contribution, if an employee is age 55 at the end of the tax year they can contribute an additional $1,000. The HSA limit is based on if the employee elects employee only medical, or if they have any dependents enrolled in medical.
Is there a way Lawson can track the different limits based on age and their medical election (EE only vs any dependents enrolled)? Possibly, using BSI?
Best practices of other organizations keeping track of the limits; if the system can track, how? Or manually auditing each pay period?
Here is a chart of HSA contribution limits for 2020:
So, the maximum for 2020 if an employee has a dependent enrolled on their medical and 55 or over is $8,100 (EE & ER contributions).
HSA employee contributions: EE has to elect to contribute and how much per paycheck, or they can waive contributing. We need to allow changes mid-year.
HSA employer contributions: ER contribution will be based on if the medical enrollment is EE only coverage vs. any dependents enrolled.
