Setting up Health Savings Account (HSA) benefits in Warp allows you to automate pre-tax HSA contributions for employees who already have existing HSA bank accounts. This guide walks through the setup process for both employers and employees.
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.
Opening an HSA bank account
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
Connecting HSA Accounts
For Employers/Admins
Step 1: Create HSA Benefit Configuration
Navigate to the employee's profile
Go to Benefits section
Click Create New benefit
Select HSA as the benefit type
Configure the HSA benefit settings:
Set contribution amount as "per paycheck" (recommended for easier setup)
Example: For $100/month contribution with semi-monthly payroll, enter $50 per paycheck
Verify annual contribution limits compliance
Configure employer matching (if applicable)
Set effective date
Step 2: Set Up Recurring Reimbursement
While in the employee's profile, set up a
recurring reimbursementConfigure the reimbursement to:
Match the HSA contribution amount per paycheck (use same amount as Step 1)
Example: If HSA benefit is $50 per paycheck, set reimbursement to $50 per paycheck
Disburse the HSA benefit into the employee's payroll
Run automatically each pay period
Save the recurring reimbursement configuration
Employee steps
Step 3: Connect HSA Bank Account
Log into your Warp employee portal
Go to Banking or Direct Deposit settings
Click on
Split Paycheckto create a new paycheck split
Step 4: Configure Paycheck Split
Navigate to Direct Deposit settings
Set up paycheck splitting:
Allocate the same per-paycheck amount to your HSA bank account
Example: If HSA benefit is $50 per paycheck, allocate $50 to HSA account
Set remaining balance to go to your primary checking account
Verify the split amounts match your HSA benefit configuration
Save your direct deposit preferences
Important Notes
Per-Paycheck Setup: For easier configuration, set up HSA contributions as "amount per paycheck" rather than monthly. This ensures consistent amounts across all three setup steps (benefit creation, reimbursement, and paycheck splitting).
Pre-tax Treatment: HSA contributions are automatically processed as pre-tax deductions, reducing your taxable income.
Annual Limits: Ensure total HSA contributions (employee + employer) don't exceed IRS annual limits:
Individual coverage: $4,300 (2024)
Family coverage: $8,550 (2024)
📅 Timing: Changes typically take effect on the next payroll cycle after setup completion.
Verification
After setup, verify:
HSA deduction appears correctly on paystub as pre-tax
Funds are deposited into the correct HSA account
Contribution amounts match your benefit configuration