Creating contribution limits rate table rules

Contribution limits rate table rules are used for setting up Health Savings accounts. A rate table defines the contribution limits based on dependents covered. In addition to defining limits, these define employer contributions.

  1. Select Benefits > Plans > Benefit Plans.
  2. On the Benefit Plan Contributions tab, click Create.
  3. Select a Coverage Class, Benefit Group, and the Contribution Start Date.
  4. Specify this information for all Contribution Types:
    Contribution Tax Type
    Select whether the employee contributions are pre tax, after tax or both. If employee contributions are not allowed for the plan, select No Employee Contribution.
    Note: This field must match with the deductions attached to the plan.
    Default Tax Type

    Select a Default Tax Type when the Contribution Tax Type is Both.

    Currency

    Select the currency in which tax type is displayed.

  5. For Contribution Limits Rate Table contribution plans, specify this information:
    Employee Maximum

    Specify the maximum amount an employee can contribute to this plan. This is applicable when the employee does not cover any dependents in the prerequisite plan. Employee-only coverage election.

    Employer Contributions

    Specify the maximum amount the employer contributes to this plan.

    Total Max Contributions

    This is a display-only field. The sum of Employee Maximum and Employer Contributions.

  6. In the Family Annual Limit section, specify this information:
    Rate Table

    Select the rate table to use for contributions. The rate table must be defined with Table Type of Dependent Limits.

  7. In the Additional Amounts section, specify this information:
    Amount

    Specify the maximum additional amount an employee is allowed to contribute to their HSA.

    In the US, for example, employees are allowed to contribute an additional $1000 to their HSA if they are over age 55.

    Age Minimum

    Specify the age minimum if employees are allowed to contribute additional amounts to their HSA.

  8. Specify contributions based on age.

    See Calculating contributions based on age.

  9. Optionally, define how adjustments are to be calculated.
    See Calculating adjustments for contributions.
  10. Click Save.