Deductions, billing, and HSAs

What you get billed and when

Thatch pulls two ACH payments a month:

• 1st of the month: the admin fee, currently $45 per enrolled employee per month.

• 15th of the month: health premiums for the following month. The September 15 payment covers October coverage.

The full breakdown is in the billing section of your Thatch dashboard. We can also pull it for you.

Why your invoice looks bigger than your allowance

Thatch bills you the full premium for each employee's plan, not just your share. They do this so they can pay the carrier directly and coverage never lapses.

You get the employee's share back through payroll. Thatch calculates each person's deduction, that amount comes into Warp, and it stays in your bank account to offset the Thatch invoice.

So: full premium out on the 15th, employee share back every payday.

One thing to expect: payroll cycles and billing cycles do not line up perfectly. If you run semi-monthly payroll against a monthly invoice, individual months will be slightly off. It evens out over the year.

Using the allowance for other medical costs

By default, employees can use their Thatch card for copays, prescriptions, and other qualified medical expenses once their premium is covered. Those charges are billed after they happen, so a prescription filled in August shows up on the September 15 invoice.

If you want to know how much of your contributions is actually being spent, ask us. We can see your unspent contribution and your average cost per enrolled employee.

Setting up deductions manually

If you are managing deductions yourself rather than through the connection, pull the deduction report from Thatch and enter the amounts in Warp. When Warp asks for a deduction type, choose Health Plan.

Not sure which setup you have? Email benefits@warp.co. We can see whether your payroll connection is live on the Thatch side and tell you.

Missed deductions

If deductions were missed for a few pay periods, usually after a transition or a setup gap, we can add catch-up deductions. You choose whether to take it in one payroll or spread it across several pay periods so it lands lighter on employees' paychecks. Tell us which you prefer and we will set it up. Nothing needed on your end beyond that.

If you want, we will also write the note to your affected employees explaining what they will see on their paystub.

HSAs

An HSA is a tax-free savings account for medical costs. Employees can only have one if they are on an HSA-qualified high deductible plan.

Thatch does not provide the HSA. Email benefits@warp.co and we will get you set up with one.

Two things to know:

• Tell us before you finalize your Thatch setup if you want HSAs. For an employee to contribute to an HSA, their allowance has to be set to cover premiums only. If the allowance can also be spent on general medical expenses, it breaks their HSA eligibility. This is a setting we ask Thatch to turn off, and it is much easier to do before launch than after.

• You can add an HSA after your coverage starts. If you are up against a month-end deadline, get the Thatch plan live first. We can add the HSA the following month.

If you want to contribute employer money to employees' HSAs through payroll, tell us the monthly amount and we will set it up.