Kansas Department of Administration

14-P-016 Changes to Health Savings Accounts Processing for 2014

Posted on October 21, 2021 at 12:49 PM by Kansas Department of Administration

DATE: December 12, 2013
SUBJECT:

Changes to Health Savings Accounts Processing for 2014

EFFECTIVE DATE:

Pay Period Beginning December 8, 2013; Ending December 21, 2013; Paid January 3, 2014

OSM CONTACT:

KDHE CONTACT:

Earl Brynds

Delos DeCelle

(785) 296-5376

(785) 296-3667

 

Earl.Brynds@da.ks.gov

ddecelle@kdheks.gov

 

APPROVAL:

Nancy Ruoff

(Original Signature on File)

SUMMARY:

Changes to the Health Savings Accounts Employer Deduction Frequency and Other Changes for Health Savings Accounts Plan Year 2014 Payroll Processing

 


For plan year (PY) 2014, the Health Care Commission approved changes which include making the employer contribution amount to a Health Savings Account (HSA) benefit option in two equal installments.  The first installment will be made during the second pay period in January (January 17, 2014 paycheck date) and the second installment will be made during the first pay period in July (July 3, 2014 paycheck date).  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 who still have a balance in their Health Care Flexible Spending Account on December 31, 2013, both the prorated bi-annual employer contribution and employee contributions will be delayed until the first pay date in April, 2014.  Employee HSA contributions will continue to be deducted semi-monthly throughout PY 2014.  However, the January 2014 employee deductions will occur on the second and third paychecks of January.  All other employee deductions for 2014 will occur as normal on the first and second paychecks of the remaining months.

For all three HDHP benefit options, the combined total for both HSA bi-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 combined total for both HSA bi-annual employer contribution amounts will be $1,125.20 for single coverage and $1,687.60 for dependent coverage.  Prorated employer contribution amounts for all employees will be as follows depending on the month the employee is enrolled for coverage:

 

Fulltime

Single

Employee + dependent

Parttime

Single

Employee + dependent

January

$750.00

$1,125.00

January

$562.60

$843.80

February

$625.00

$937.50

February

$468.83

$703.16

March

$500.00

$750.00

March

$375.06

$562.53

April

$375.00

$562.50

April

$281.30

$421.90

May

$250.00

$375.00

May

$187.54

$281.27

June

$125.00

$187.50

June

$93.77

$140.63

July

$750.00

$1,125.00

July

$562.60

$843.80

August

$625.00

$937.50

August

$468.83

$703.16

September

$500.00

$750.00

September

$375.06

$562.53

October

$375.00

$562.50

October

$281.30

$421.90

November

$250.00

$375.00

November

$187.54

$281.27

December

$125.00

$187.50

December

$93.77

$140.63

 

For employees who are enrolled after the beginning of 2014 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 bi-annual 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, 2014 and enrolls in HSA.  The coverage begin date should be entered effective August 1, 2014 and the HSA prorated bi-annual employer contribution for August will be processed on their first paycheck in August.

For all employees, 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 bi-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.

To accommodate the new 2014 HSA payroll processing procedures in SHARP, the setup on the Deduction Table for all current HSA employee only deduction codes in SHARP for Plan Types 6Y and 6Z will be changed to allow deductions on the third paycheck of a month effective December 21, 2013.  

As a reminder, Regents should not be using the HSR%%% plan type 67 benefit plans/deduction codes since it was decided among Regents in 2013 to only use the HSM%%% plan type 67 benefit plans/deduction codes instead.

The Office of Systems Management, Payroll Systems Team will make changes to the SHARP payroll system to implement the new Health Savings Account processing.  Regents’ institutions are responsible for ensuring that the new Health Savings Account processing procedures are implemented in their individual systems. 

SG:NTR:ewb

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