Health Savings Accounts (HSAs) offer valuable tax advantages for employees with qualifying health plans. Here's everything you need to know about setting up HSA contributions through Warp.
Eligibility Requirements
The first step is confirming eligibility. Your company must offer a High Deductible Health Plan (HDHP) to qualify for HSA contributions. This is a non-negotiable requirement set by federal regulations.
Employee Setup Process
Once you've confirmed HDHP coverage, here's how employees can get started:
Open an individual HSA bank account (we recommend Optum Bank for their straightforward setup process)
Add the HSA account to their payroll profile
Specify their preferred paycheck split between HSA and personal accounts
Employer Steps
As an employer, your role in the process is minimal but crucial:
Collect each employee's desired pre-tax HSA contribution amount per paycheck
Work with your payroll provider to establish:
Pre-tax deductions
Recurring benefit payments
Direct deposits to HSA accounts