Kansas Department of Administration

13-P-004 Addition of New Health Savings Accounts Employer Deduction Codes/Benefit Plans

Posted on 10/21/2021 at 12:49 PM by Kansas Department of Administration

DATE: October 11, 2012
SUBJECT: Addition of New Health Savings Accounts Employer Deduction Codes/Benefit Plans
EFFECTIVE DATE: Pay Period Beginning December 9, 2012; Ending December 22, 2012; Paid January 4, 2013
CONTACT:

Earl Brynds

Eric Strate

 

(785) 296-5376

(785) 291-3546

 

Earl.Brynds@da.ks.gov

estrate@kdheks.gov

APPROVAL:

Nancy Ruoff

(Original Signature on File)

SUMMARY:

Addition of New Health Savings Accounts Employer Deduction Codes/Benefit Plans and Other Changes for Health Savings Accounts Plan Year 2013 Payroll Processing


For plan year (PY) 2013, the Health Care Commission approved changes which include making the full employer contribution amount to a Health Savings Account (HSA) benefit option in one lump sum during the first pay period in January, 2013 (January 4, 2013 paycheck) for employees with a zero balance in their Health Care Flexible Spending Account by December 31, 2012.  This employer contribution will be processed in SHARP for each employee participating through the State of Kansas health insurance program in a High Deductible Health Plan (HDHP) and making the required employee contribution to an HSA. For employees that still have a balance in their Health Care Flexible Spending Account on December 31, 2012, both the prorated employer contribution and employee contributions will be delayed until the first pay date in April, 2013.  Employee HSA contributions will continue to be deducted semi-monthly throughout PY 2013.

 

For all three HDHP benefit options, the full HSA annual employer contribution amounts for full-time employees will be $1,500 for single coverage and $2,250 for dependent coverage. For part-time employees, the full HSA annual employer contribution amounts will be $1,125.20 for single coverage and $1,687.60 for dependent coverage.  Prorated annual employer contribution amounts for all employees except 9-month paid employees at Regents Institutions will be as follows depending on the month the employee is enrolled for coverage:

 

Fulltime

Single

Employee + dependent

Parttime

Single

Employee + dependent

January

$1,500.00

$2,250.00

January

$1,125.20

$1,687.60

February

$1,375.00

$2,062.50

February

$1,031.36

$1,546.82

March

$1,250.00

$1,875.00

March

$937.60

$1,406.20

April

$1,125.00

$1,687.50

April

$843.84

$1,265.58

May

$1,000.00

$1,500.00

May

$750.08

$1,124.96

June

$875.00

$1,312.50

June

$656.32

$984.34

July

$750.00

$1,125.00

July

$562.56

$843.72

August

$625.00

$937.50

August

$468.80

$703.10

September

$500.00

$750.00

September

$375.04

$562.48

October

$375.00

$562.50

October

$281.28

$421.86

November

$250.00

$375.00

November

$187.52

$281.24

December

$125.00

$187.50

December

$93.76

$140.62

 

For employees who are enrolled after the beginning of 2013 and for when a hire occurs in the middle of the month, the coverage begin date entered into SHARP should be effective for the beginning of the month following 30 days from the date of hire and the appropriate prorated employer contribution should also be processed effective on the first paycheck of that month.  For example, a new employee is hired on June 17, 2013 and enrolls in HSA.  The coverage begin date should be entered effective August 1, 2013 and the HSA prorated employer contribution for August will be processed on their first paycheck in August.

 

For all employees except 9-month paid employees at Regents Institutions, the agency GHI composite rate cost for the HDHP benefit options will continue to be reduced by the amount of the semi-monthly HSA employer contribution and the HSA annual/prorated employer contributions will be added as flat employer contributions to the FSA benefit setup tables in SHARP.  Both GHI and HSA employer contributions will be charged to Account Code 519500.

 

For 9-month paid Regent employees (16 deductions), the HSA employer contribution cost will be paid by the agency in addition to the full agency GHI composite rate cost.  Regent agencies will then request a journal voucher reimbursement of the amount of their agency HSA employer contributions from KDHE, Division of Health Care Finance on a monthly, quarterly, or annual basis.   Prorated annual employer contribution amounts for 9-month paid Regent employees (16 deductions) will be as follows depending on the month the employee is enrolled for coverage:

 

Fulltime

Single

Employee + dependent

Parttime

Single

Employee + dependent

January

$1,500.00

$2,250.00

January

$1,125.20

$1,687.60

February

$1,500.00

$2,250.00

February

$1,125.20

$1,687.60

March

$1,500.00

$2,250.00

March

$1,125.20

$1,687.60

April

$1,500.00

$2,250.00

April

$1,125.20

$1,687.60

May

$1,500.00

$2,250.00

May

$1,125.20

$1,687.60

June

$1,312.50

$1,968.68

June

$984.48

$1,476.44

July

$1,125.00

$1,687.44

July

$843.84

$1,265.52

August

$937.50

$1,406.20

August

$703.20

$1,054.60

September

$750.00

$1,124.96

September

$562.56

$843.68

October

$562.50

$843.72

October

$421.92

$632.76

November

$375.00

$562.48

November

$281.28

$421.84

December

$187.50

$281.24

December

$140.64

$210.92

 

To accommodate the new HSA payroll processing procedures, the setup on the Deduction Table for all current HSA deduction codes in SHARP for Plan Types 6Y and 6Z will be changed to employee only deduction codes effective December 9, 2012.   A new Benefit Plan Type (67) will be used in SHARP to process the employer only contributions.  Also, new employer deduction codes/benefit plans will be added in SHARP effective for the payroll period beginning December 9 and ending December 22, 2012, paid January 4, 2013 and are applicable to all three HDHP benefit options.

 

The new HSA employer deduction codes/benefit plans are:

All employees except Regent 9-month: 

PLAN TYPE DEDUCTION CODE DESCRIPTION SHORTDESCRIPTION
67 HSMSBL Health Sav Acct-ER-Single-FT HSA-ER Sgl
67 HSMSBX Health Sav Acct-ER-Single PT HSAERSglPT
67 HSMDBP Health Sav Acct-ER-Dep-FT HSA-ER Dep
67 HSMDBX Health Sav Acct-ER-Dep-PT HSAERDepPT

 

 

 

Regent 9-month (16deductions):

PLAN TYPE DEDUCTION CODE DESCRIPTION SHORTDESCRIPTION
67 HSRSBL Health Sav Acct-ER-Single-FT16 HSA-ER Sgl16
67 HSRSBX Health Sav Acct-ER-Single PT16 HSAERSglPT16
67 HSRDBP Health Sav Acct-ER-Dep-FT16 HSA-ER Dep16
67 HSRDBX Health Sav Acct-ER-Dep-PT16 HSAERDepPT16

 

The Office of General Services, Payroll Services Section will remit the employee and employer monies to one bank (US Bank) for all agencies and for all three health plan vendors (Blue Cross and Blue Shield of Kansas, Coventry/PHS and UnitedHealthcare) beginning with the January 4, 2013 paychecks. 

 

The Office of General Services, Payroll Systems Team will make changes to the SHARP payroll system to implement the new Health Savings Account benefit plan type/new deduction codes.  Regents’ institutions are responsible for ensuring that the new Health Savings Account benefit plan type/new deduction codes are available in their individual systems.  In addition, Regents’ institutions should be prepared to test their benefits interface and payroll files for the new deductions by November 15, 2012.

 

MJ:NTR:ewb

 

 


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