Advanced Benefits - PSFT (MOSC)

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HSA Implementation - Eligibility Every 2 Weeks Based on Payroll Cycle

edited Mar 30, 2022 1:24PM in Advanced Benefits - PSFT (MOSC) 1 commentAnswered

Hello,

We base benefits eligibility on payroll cycle. Therefore, if an employee is hired on 3/20/2020, then that ee is benefit-eligible on 4/13/2020. If an ee elects the HDHP effective 4/13/2020, the IRS states that the HSA contributions cannot begin until the 1st of the following month or later from when the ee enrolls in the HDHP. Our normal process would enroll the ee in the HSA on 4/13/2020 along with the HDHP. I have updated the plan type 67 event rule to the following, but it's bringing the enrollment/deduction out 2 weeks instead of the following month.

Is anyone else doing benefits-eligibility every 2 weeks like us and have an HDHP and HSA? Any help would be greatly appreciated. Thanks!

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