Namely Recommended: Mid-year HSA/FSA Enrollments Best Practices

This article provides best practices when submitting mid-year changes to HSA/FSA elections.

OVERVIEW

Employees may change their HSA and FSA elections at any time, even if they have already contributed throughout the year. Adjustments to FSA are generally limited to Qualifying Life Events. Employees must change their HSA/FSA election by following the instructions provided inView, Change, or Enroll in Benefitsand you have to approve or rejecttheir enrollment once submitted.

These mid-year election updates will always need to be manually adjusted in Namely Payroll in order to avoid deduction errors and over contributions. 

ADJUSTING EMPLOYEE DEDUCTIONS

  1. In Namely Payroll, go to Enrollment Setup > Confirmation Reports.

  2. Select Pending for the Search Options > Search.

  3. Select the checkbox next to the enrollment.

  4. Click Confirmed for the dropdown selection > Update Selected.

  5. Go to the Deductions tab of the employee's payroll profile.

  6. Click Edit on the HSA or FSA deduction to adjust the cost per pay period.

    • The Enrollment Wizard will automatically calculate incorrectly. It does not take into account the amount an employee has already contributed to the plan prior to the election changes.

TIP:

Deduction Calculation = (New volume amount - YTD Contribution amount) / Number of pay periods left in the plan year.

For example, an employee had previously elected $1,000 for the year but there are still four pay periods left in the plan year. The new elected amount is $1,500 and the Current YTD contribution is $833.33. The new deduction will be $166.67 per pay period. 

  • ($1,500 - $833.33)/4 = $166.67 per pay period

  1. If applicable: Once the deduction has been adjusted, submit a case in the Help Community if you will need to update the cost on the plan election in the Plan Benefits tab.