1. Login and go to "Plan Administration Menu" and then look at the bottom of the next menu. You should see "HSA Benefit Categories" and "LSA Benefit Categories."
Note: This article is going to focus solely on the health spending account (HSA) Benefit Categories.
2. Scroll to the bottom and click on "Add Benefit Category" if you want to add a brand new benefit category, or go to the last "Edit" column and click on the "Edit" link beside the benefit category you wish to edit.
Note: Canada Revenue Agency requires that benefit categories may ONLY be defined based on the following distinctions:
- Employee Job Classification (e.g. Staff, Management)
- Division (e.g. Sales, Engineering)
- Geographic location
It is NOT allowable, for example, to grant different benefits to shareholder vs non-shareholder employees.
3. Benefit Category Section Explained:
Benefit Category: This is the title of the new benefit category. It is important to use titles that are easily identifiable and that makes sense in how you are choosing to group employees. Everyone in the same benefit category receives the same limits.
Definition: List the specific distinctions of this category
Note: Some companies choose to adjust limits based on whether an employee has dependents. You can enter in different limits, or use the same number for all three spaces below. If an employee, has dependents and added at a later time, our system will automatically adjust their limit accordingly once dependents have been added to the account.
Limit (single): The limit for an employee with no dependents.
Limit (couple): The limit for an employee with a listed spouse on the account.
Limit (family): The limit for an employee with listed children on the account.
Waiting Period: The time from the hire date, entered in the employee's profile before their benefits begin.
Prorating: The limit is proportionately adjusted according to what point an employee is added on in the benefit year.
Note: For a more detailed look at waiting period and pro-rating, click here.
Exclude HSA/LSA Coverage: This is only used when you are adding a "Plan Administrator with no benefits" category to the account.
Once a new benefit category has been added, it will show up as an option to select when you are adding a new employee. If you make a change to an existing benefit category, this change will impact every employee in the benefit category.