A Health Savings Account (HSA) is a tax-advantaged account for people who are enrolled in an HSA-eligible high-deductible health plan (HDHP). Money is contributed pre-tax and accumulates each year that you’re enrolled. HSA funds go with you wherever you go and they do not expire.
You can use your HSA to pay for eligible health expenses, including some dental and vision costs. Read more from the IRS about how an HSA works.
If your HSA is managed by Gusto (including the broker integration), you can enroll from your Gusto account and review transactions, claims, and more in the Gusto Benefits Card Manager.
If your company offers an HSA through a third party, admins can set up benefit deductions for your team.
Choose a section below to learn about how an HSA works.
Any employee eligible to participate in health benefits and enrolled in the company’s HSA-eligible plan.
A plan's HSA-eligibility is determined by the insurance carrier. An HSA-eligible plan often has "HSA" or "HDHP" in its name.
If an employee enrolls in an HDHP in the middle of a month, they can start contributing to an HSA the following month.
Per the IRS, some people are not eligible to contribute to an HSA:
Check the IRS's list of qualifying expenses.
You can use your HSA to pay for eligible health expenses for yourself and your dependents. Eligible health expenses may include things like copays, prescriptions, and medical devices.
Eligible employees choose how much they want to contribute during open enrollment. The employee contribution is also known as their election. The IRS sets contribution limits for each calendar year.
| 2023 | 2024 | |
| Contribution limit (employee + employer) | Self-only: $3,850 Family: $7,750 | Self-only: $4,150 Family: $$8,300 |
| Catch-up contributions (age 55 or older) | $1,000 | $1,000 |
Catch-up contributions can be made any time during the year on behalf in which the HSA participant turns 55. A married couple may make two HSA catch-up contributions as long as they are both at least 55 and have separate HSA accounts.
If the company contributes to employee HSAs, their contributions count toward each person's annual maximum. If an employee leaves the company mid-year, any company contributions made so far cannot be returned to the company.
Funds are available for you to spend about one week after the check date of a payroll where deductions were taken. HSAs are post-funded, meaning that you can only use funds once they've been deducted from payroll and deposited into your account.
Employee contributions are deducted pre-tax from payroll.
If a deduction is missed, the remaining amount owed is redistributed over the remaining payrolls in the policy year.
Since HSAs are your team's personal bank accounts, money moves each time deposits are made into their HSAs. You'll see a debit 5 days after the check date of your payroll for the total of all employee HSA deductions and employer HSA contributions. This debit will appear as "Avidia Bank:Gusto Insurance: [Company Name]."
If you change your company bank account, you'll see one or two non-refundable $1 and $0.01 test debits under the name MBI/Med-I-Bank.
There are many differences between the two, but one of the biggest distinctions is that the funds in an FSA will expire if unused during a plan year, while the HSA funds can be used beyond the plan year.
FSA: Employees can make pre-tax contributions to their FSA accounts, which are pre-funded by the employer and repaid through payroll deductions. Money in FSAs can be used to cover eligible expenses and must be used before the end of the plan year. This is known as the “use it or lose it rule.”
HSA: A tax-advantaged account for people who are enrolled in a high-deductible health plan (HDHP). Pre-tax dollars are contributed to the account and accumulate each year that you’re enrolled without expiring. These funds can be used to cover eligible medical expenses and investments.
Learn more about how to spend your FSA and HSA from the IRS.
Here's what you need to know to set up an HSA through Gusto.
Here are the company fees to offer an HSA with Gusto:
To set up a Health Savings Account through Gusto, your company must also have Gusto-brokered medical insurance or use the broker integration. At least one of the medical plans you offer must be a High Deductible Health Plan (HDHP).
If your company already has benefits with Gusto, including the broker integration, benefits admins can add an HSA-eligible health plan and an HSA at your next renewal. If you choose a renewal package with an HDHP in it, you'll be shown the option to add an HSA right from your Gusto account. If you don't see an HDHP option in Gusto, reach out to your renewal advisor.
If you offer an HSA through a third party, you can set up payroll deductions for your enrolled employees.
You must offer medical insurance through Gusto or use the broker integration to offer an HSA through Gusto.
If you want to transfer your company's existing HSA to Gusto, you can do so at your next renewal. Here's how:
Here's what you need to know about enrolling in an HSA.
If your company offers a Health Savings Account (HSA) through Gusto, you can enroll in it any time if you're enrolled in an HSA-eligible medical plan. An HSA-eligible medical plan is also known as a High Deductible Health Plan (HDHP).
For first-time enrollees, the cutoff to enroll is the 20th of the month for the following month (ex: enroll by June 20th for July benefits). If you want to change your contribution at any time, you have until the 20th of a given month to make contribution changes for the following month.
Follow the steps below to enroll in an HSA:
Once your enrollment is processed, we'll email you a welcome packet and mail you a Gusto Benefits Card you can start using for qualified expenses. Follow the steps below under "Use your HSA" to register for your online Gusto Benefits Card Manager account, where you can view your balance, submit claims for reimbursement, and more.
After the start date, you can find your plan details in the Benefits section of your account. There you'll also find your plan document, which explains HSA rules and how to use your benefits. Payroll deductions will begin on the first payroll of your HSA's plan year.
By default, periodic statements are sent by mail for $1.95. To opt out of statement fees, sign in to the Gusto Benefits Card Manager and click Go Green. Once you change this setting, you'll get electronic statements and the fee will no longer be applied.
The bank that administers the HSA is required to run Customer Identification Program (CIP) testing to verify the identity of anyone who enrolls in an HSA. This usually happens behind the scenes without issue, but occasionally outdated or missing information causes the bank to request documentation (such as a copy of your birth certificate or Social Security card).
If our banking partner Avidia emails you to request information, follow the steps below to make sure your HSA can be set up. Gusto cannot submit these documents on your behalf, so you must work directly with Avidia to complete this last step.
Once Avidia completes the CIP testing, we'll mail your Gusto Benefits Card and start payroll deductions.
By default, periodic statements are sent by mail for $1.95. To opt out of statement fees, sign in to the Gusto Benefits Card Manager and click Go Green. Once you change this setting, you'll get electronic statements and the fee will no longer be applied.
HSA funds are available for you to spend about a week after the date of a paycheck in which HSA deductions were taken.
There are four ways you can use your HSA funds:
Once you receive your card in the mail, you can add it to your mobile wallet. Choose your phone provider for instructions:
If you use your card for the first time by swiping it or using mobile pay in person, the card is automatically activated. If your first use of the card is an online transaction, follow the steps below to activate it first.
If you need help adding your card to your mobile wallet, contact your mobile wallet provider.
Swiping your card at a physical location will automatically activate it.
If your first use of the card is an online transaction, follow these steps to activate it first:
If your company offers multiple benefits savings accounts through Gusto and you enroll in more than one, you will use the same Gusto Benefits Card for all transactions. For example, if you enroll in both commuter benefits and an FSA, you'll use the same Gusto Benefits Card for eligible commuting and medical expenses. Eligible claims and transactions are automatically drawn from the correct account.
Your Gusto Benefits Card should be used as a credit card, though some vendors require a PIN. How's how to find it:
If your Gusto Benefits Card has been misplaced or stolen, report it as soon as possible with these steps:
If you don’t have the option to issue another card to yourself, reach out to [email protected] and we'll issue you a new Gusto Benefits Card.
If you find a transaction that you did not complete yourself and you believe to be fraudulent, here's how to dispute it.
Note: If you recognize the transaction but the service provider charged the wrong amount, contact your provider directly to discuss the transaction.
If the dispute is approved, you should see a refund on your account within 55 days.
You may use your card on qualified expenses for yourself and your dependents. An eligible dependent is any family member who is a tax dependent on your tax return.
If needed, follow these steps to add a dependent to your account and issue them their own card:
We'll mail the card in a blank white envelope to your mailing address within 7–10 days.
To register for the Gusto Benefits Card Manager (GBCM) for the first time, follow the steps below.
Once you're registered, you can access your Gusto Benefits Card Manager at this link or from the Benefits tab of your account.
If you've left your company and didn’t register for your Gusto Benefits Card Manager account during your employment, reach out to [email protected] for your sign-in credentials.
Unlike FSAs and commuter benefits, you don't need to submit receipts for HSA reimbursements because an HSA is your personal bank account. You're responsible for making sure you use your funds on qualifying expenses.
If you paid out of pocket for an eligible expense, follow these steps to submit a claim for reimbursement:
If you chose to be reimbursed by direct deposit, your reimbursement will arrive in 3–5 business days as an "MBI/Med-I-Bank" credit. If you chose to be reimbursed by check, it'll arrive to your mailing address in 7–10 business days.
Once your HSA balance is $1,000 or more, you have the option to invest your funds. You can start investing from your Gusto Benefits Card Manager account.
Avidia Bank's investment options are listed here. The investing will be through Devenir Investment Advisors, LLC. You can find detailed information in the welcome packet that was sent when your HSA began. If you need to request another welcome packet, contact us from the Help or Priority support section of your Gusto account.
If your balance is less than $3,000, there's an investment fee of $2.50/month charged by Devenir. Once your balance is $3,000, the fee is waived.
To order checks for your HSA, simply return the check order form located in the Gusto Benefits Card Manager. You'll receive a book of 25 checks within 14 business days of receipt of the form.
You can also pay a provider by check right from the Gusto Benefits Card Manager. Once you fill out the online form, a check will be sent to your provider on your behalf.
Follow these steps if you'd like to cancel a recurring reimbursement:
Unlike FSAs and commuter benefits, an HSA is your personal bank account—you alone are responsible for making sure that you spend your funds on qualifying expenses.
If you've spent HSA funds on a non-qualifying expense, you can fix this in one of two ways:
Choose a section below for more ways to manage your HSA.
By default, you'll be sent periodic statements by mail, which costs $1.95. To opt out of statement fees, sign in to your Gusto Benefits Card Manager account and click Go Green. Once you change this setting, you'll only receive electronic statements and the fee will no longer be applied.
Transfer funds to your Gusto HSA
To transfer HSA funds from a previous provider to your Gusto-managed HSA with Avidia, follow these steps:
Depending on your previous provider, it can take up to 4–6 weeks for the transfer to process.
Transfer funds from your Gusto HSA to another HSA provider
Contact your new HSA provider for instructions to request a transfer. They'll typically have a form for you to fill out.
Follow the steps below if you want to make a one-time contribution to your HSA. It takes 1–3 days for a bank to be verified before funds can be transferred from it.
Here are some requirements from the IRS to keep in mind when you make contributions outside of payroll.
Once you're enrolled, you can change your annual HSA contribution anytime. If you'd rather make a one-time contribution outside of payroll, check out the "Contribute to your HSA outside of payroll deductions" section above.
Changes must be submitted before the 20th of the current month to take effect on the first day of the following month (ex: submit changes by April 20th to start May 1). You'll be unable to make changes after the 20th of the last month of your policy.
To make changes:
Two tax forms are provided for employees who have an HSA: 1099-SA and 5498-SA.
How to find them: Avidia Bank sends applicable forms directly to enrolled employees, unless you've changed your delivery preference to electronic delivery only. You can also find your forms in the Gusto Benefits Card Manager:
Follow these steps to find your HSA bank account number:
If you leave your company or the HSA benefit is discontinued, here's how to access your funds.
If you cancel your HSA or your employer stops offering an HSA through Gusto, you'll still have access to your HSA, but it will be managed directly by Avidia Bank moving forward. Your balance does not expire—the HSA will be converted into an individual account and you'll receive information in the mail from Avidia about how to manage the HSA through Avidia. There are no fees for the employee or employer for Avidia's individual account.
If you renew your HSA during open enrollment, your funds accumulate and do not expire. You can continue to use your Gusto Benefits Card and the Gusto Benefits Card Manager.
When an employee leaves the company, the HSA remains active through the end of the month following the last day of employment.
At that point, the HSA is converted into an individual account and the employee will receive information in the mail from Avidia directly regarding how to manage the HSA through Avidia. There are no fees for the employee or employer for Avidia's individual account.
You can continue to spend your HSA funds on qualified expenses, but remember that you can only contribute to an HSA if you're enrolled in a High Deductible Health Plan (HDHP).
Since an HSA is your personal account, employee funds cannot be subject to a vesting schedule and no portion may be returned to the employer.