1. Health Savings Account (HSA) Funding & Invoicing
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2. Agenda HSA Funding & Invoicing Invoice for Administrative Fees
File and Funding Process
Unopened Account Funding (Pending Contributions)
Notification
Online Funding Report
Sample Funding Report
Appendix: Sample funding timeline, Pending Contributions scenario

3. Invoice for Administrative Fees
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4. 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
notification sent 2 days prior to ACH pull
Ensure bank has removed filters and both WageWorks ACH IDs are listed

5. HSA Funding Process
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6. 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 from - 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.

7. HSA Funding Model – BNY Mellon
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 0
Funding Report generated
Captures only funds that were able to post to open HSAs
notification to client
Day 1
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)
Day 2

8. 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

9. 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

10. Pending & Expired Contributions
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11. 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

12. 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.

13. 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.

14. Notification
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15. Sample HSA Funding E-mail
From: Sent: Thursday, January 08, :01 AM To: Mr. Johnny Doe Cc: 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 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-WageWorks) if you have any questions.

16. ‘HSA Contribution Funding Report’
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17. 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.

18. Sample HSA Funding Report

19. Appendix
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20. 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 yet-to-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
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

21. 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)

22. ©2013 WageWorks Inc. All rights reserved.