07-P-005 Addition of Employer Deduction Codes/Funding Changes for Health Savings Account (Revises 06-P-009)
|DATE:||September 18, 2006|
|SUBJECT:||Addition of Employer Deduction Codes/Funding Changes for Health Savings Account|
|EFFECTIVE DATE:||Pay Period Beginning December 17, 2006; Ending December 30, 2006; Paid January 12, 2007|
|CONTACT:||Nancy Ruoff||(785) email@example.com|
|SUMMARY:||Addition of New Employer Payroll Deduction Codes and Funding Changes for the Health Savings Account Program|
For Plan Year 2007, the Health Care Commission approved the addition of an employer contribution to the Health Savings Account (HSA) of each employee participating through the State of Kansas health insurance program in a Qualified High Deductible Health Plan (QHDHP) and making the required employee contribution to a Health Savings Account. Employer contributions for the Health Savings Accounts will be remitted to UMB on payday and should be posted to the individual employee accounts on payday.
The new HSA annual employer contribution amounts for full-time employees are $900 for single coverage and $1350 for dependent coverage. For part-time employees, they are $675 for single coverage and $1012.56 for dependent coverage.
For all employees except 9-month paid employees at Regents Institutions, the agency GHI composite rate cost for the QHDHP will be reduced by the amount of the HSA employer contribution and the HSA employer contribution will be added as a flat employer contribution to the HSA benefit setup tables in SHARP. Both GHI and HSA employer contributions will be charged to Object Code 1950.
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 the Kansas Health Policy Authority on a monthly, quarterly, or annual basis.
To accommodate the new HSA employer contribution, new plan types and deduction codes will be added in SHARP effective for the payroll period beginning December 17 and ending December 30, 2006, paid January 12, 2007. These new plan types/deduction codes are:
All employees except Regent 9-month:
|6Y||HSASGL||HSA-Single Coverage/High Ded||HSA-Single|
Regent 9-month (16deductions):
|6Y||HSXSGL||Health Sav Acct-Single-FT-16||HSXSGL|
|6Y||HSXSGX||Health Sav Acct-Single-PT-16||HSXSGX|
|6Z||HSXDEP||Health Sav Acct-Dep-FT-16||HSXDEP|
|6Z||HSXDEX||Health Sav Acct-Dep-PT-16||HSXDEX|
The Division of Accounts and Reports, Payroll Services Section will remit the employee and employer monies to UMB for all agencies. The KPAYHSA2 report is available in the agency MVS directories and will be modified to provide employee and employer detail for each remittance period.
REGENTS PAYROLL SYSTEM PROCESSING CHANGES
The following changes will be made to accommodate the new employer contribution and to make the fund/index processing for the employee deduction consistent with previously established standards.
The following additions/change to the Fund/Index combination will be completed for the Department of Administration clearing fund for Health Savings Account Deductions:
|173||9051||9075||9764 SHARP EE Index (replacing 9075)|
|173||9051||9075||9864 SHARP Employer Index (new)|
Effective 12/17/06, index code 9764 will replace the previously established index code of 9702 to record the receipt of the employee deductions by the individual Regent’s institutions. In addition, index code 9664 has been added to the STARS system for each of the Regent’s Payroll Funds (98XX) to record the receipt of the new employer contribution by the individual Regent’s institutions. Attached is an updated copy of the “Index Codes for Agency and DOA Clearing Funds”. This document has been updated for the changes noted above and replaces the document issued with Informational Circular 06-P-009 dated October 14, 2005.
The Division of Accounts and Reports, Payroll Systems Team will make changes to the SHARP payroll system to implement the Health Savings Account employer contribution. Regent’s institutions are responsible for ensuring that the Health Savings Account employer contribution is available in their individuals systems. In addition, Regent’s institutions should be prepared to test their benefits interface and payroll files for the new deduction prior to November 1, 2006.
Attachment: Index Codes for Agency and DOA Clearing Funds (.pdf)