A Health Savings Account (HSA) is a type of pre-tax benefit account for people who are enrolled in an HSA-eligible high-deductible health plan (HDHP). Money is contributed pre-tax, incurs interest, and can be invested. HSA funds accumulate each year that you're enrolled, go with you wherever you go, and 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.
To offer an HSA with Gusto, your company must offer health insurance with Gusto. If your company offers an HSA through a third party, admins can set up benefit deductions for your team.
Choose a dropdown below to learn about how an HSA works. If your HSA is managed by Gusto, head to the Benefits section of your Gusto account to learn about your plan's details.
To be eligible to participate in an HSA, you must be eligible for health benefits and enrolled in the company’s HSA-eligible plan, referred to as a high-deductible health plan (HDHP) by the IRS.
If an employee enrolls in an HDHP in the middle of a month, they can start contributing to an HSA the following month.
A health plan's HSA-eligibility is determined by the insurance carrier and IRS requirements. An HSA-eligible plan often has "HSA" or "HDHP" in its name.
| 2024 | 2025 | |
|---|---|---|
| Minimum deductible | Self-only: $1,600 Family: $3,200 | Self-only: $1,650 Family: $3,300 |
| Maximum out of pocket | Self-only: $8,050 Family: $16,100 | Self-only: $8,300 Family: $16,600 |
The following individuals are not eligible to participate in an HSA through Gusto, due to their ineligbility to contribute to an HSA pre-tax.
Per the IRS, these individuals are also disqualified from participating in an HSA:
Eligible expenses
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 dependents
Outside of yourself, HSA funds can be used on eligible expenses for eligible dependents defined by IRS Publication 969. These dependents are generally:
Eligible employees choose how much they want to contribute while enrolling. The employee contribution is also known as their election. The IRS sets contribution limits for each calendar year.
| 2024 | 2025 | |
| Contribution limit (employee + employer) | Self-only: $4,150 Family: $$8,300 | Self-only: $4,300 Family: $8,550 |
| 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.
Employees are also able to contribute to their HSA outside of payroll. Note that contributions made outside of payroll are not tracked by Gusto. Make sure you aren’t over-contributing before making individual contributions.
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. The employee’s monthly election is evenly distributed across payrolls with check dates in that month. Note: Payrolls processed in a prior month will not include regular HSA deductions (ex: A payroll with a February 1st check date is processed in January. The February 1st payroll will not include HSA deductions).
If a deduction is missed and there are still future payrolls in that month, the employee’s monthly election will be redistributed across that month's remaining payrolls. If there are no more payrolls for that month, the employee’s deductions will increase by 50% on upcoming payrolls until the missed deduction is resolved.
There are many differences between the two, but one of the biggest distinctions is that funds in an FSA will expire if they're 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 pre-tax benefit 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.
When an employee sets aside pre-tax money for a HSA, their gross taxable income is lowered. Since employers are taxed for FICA on the amount an employee earns, employer taxes are also reduced.
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 only at your next renewal. If you choose a renewal package with an HDHP in it, Gusto will automatically add an HSA to your package. To change the company contribution or remove the benefit, click edit next to the plan details. If you do not 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 have an existing HSA with another provider, you have three options to set up an HSA managed by Gusto.
Option 1: Add an HSA when transferring your company's medical insurance
If you're currently transferring your company's health benefits to Gusto, let us know if you'd like to offer an HSA through Gusto.
Once the HSA is added, any employee enrolled in an eligible medical plan will have the option to enroll in the HSA from their Gusto account.
Once enrolled, employees can use this form to close their existing HSA and transfer the funds into their new Gusto HSA.
Option 2: Add a new HSA at renewal
If you're within a few months of your renewal date, here's how you can start offering an HSA at renewal:
Option 3: Add an HSA mid-year
As long as you already offer an HSA-eligible medical plan, you can request to add an HSA mid-year. Here's how:
Once you complete the steps in Gusto, we'll start setting up your benefit and contact you with next steps. Once the HSA is added, any employee who is enrolled in an eligible medical plan will have the option to enroll the HSA in their Gusto account. Then, enrolled employees can use this form to close their existing HSA and transfer the funds into their new Gusto HSA.
Here's what you need to know about enrolling in an HSA.
Who's eligible
To be eligible to participate in your company’s HSA, you must be a non-owner employee eligible for health benefits and enrolled in the company’s HSA-eligible plan, referred to as high-deductible health plans (HDHP) by the IRS. Owners of a C Corporation are eligible to participate.
Who’s ineligible
The following individuals are not eligible to participate in an HSA through Gusto, due to their ineligbility to contribute to an HSA pre-tax.
Per the IRS, these individuals are also disqualified from participating in an HSA:
If your company offers a Health Savings Account (HSA) through Gusto, you can enroll in the HSA during your new hire enrollment or open enrollment. It’s recommended you enroll during those times if your company offers a contribution or if you intend to maximize your contributions.
However, you may enroll in an HSA at any time as long as you’re enrolled in an HSA-eligible medical plan. An HSA-eligible medical plan is also known as a High Deductible Health Plan (HDHP).
If you’re enrolling outside of an enrollment period, 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.
If you're enrolling in an HSA outside of your new hire enrollment or your company's open enrollment period, follow these steps:
For first-time enrollees, additional information may be needed to open your HSA. See the “Customer Identification Program (CIP)” section below for more details.
Once your enrollment is processed, we'll mail you a Gusto Benefits Card you can start using for qualified expenses. Access your account through your HSA tile in Gusto to view your balance, submit expenses for reimbursement, invest your funds 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.
Any bank that administers an HSA is required to run Customer Identification Program (CIP) testing to verify the identity of anyone who enrolls in an HSA. This can happen behind the scenes without issue, but the bank often needs more information. If so, you'll be contacted to provide documentation, such as a copy of your birth certificate or Social Security card.
Complete the CIP process for your Elevate-powered HSA
If more information is required to open your Elevate HSA, you’ll receive an email from [email protected]. Sign in to the Benefits Card Hub to resolve any pending CIP issues.
If/when UMB Bank approves your documentation and activates your HSA, your payroll deductions and contributions will begin.
By default, periodic statements are sent by mail for $1.00. To opt out of statement fees, access the Benefits Card Hub and find the notification on your home page. 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 many ways you can use your HSA funds:
Here's how to set up your Benefits Card Hub account, sign in, and recover your password or username.
To access the Benefits Card Hub for the first time, follow the steps below to register.
If you've left your company and did not register for the Benefits Card Hub during your employment: It’s not too late to register by using the steps below. But first, contact Gusto to request your registration ID.
Once you register for the Benefits Card Hub, you can sign in at this link or from your Gusto account.
Here's how to get there from your Gusto account:
If you do not know your password or username for the Benefits Cards Hub, follow these steps to recover or update it.
Here's how to add your card to mobile pay, lock or replace your card, dispute a transaction, and more.
Your Gusto benefits card will be mailed to your home address on file with Gusto after you’ve completed your enrollment into a pre-tax benefit (FSA, DCFSA, HSA, or Commuter).
Once mailed, it should arrive within 7–10 business days in a nondescript envelope from Gusto. Sign in to the Benefits Card Hub if you need to report your card lost or stolen.
You will only receive one card even if you are enrolled in multiple pre-tax benefit accounts. The card will automatically apply expenses to the appropriate account.
Once you’ve activated your card, you can add it to your mobile wallet. Choose your phone provider for instructions:
If you need help adding your card to your mobile wallet, contact your mobile wallet provider.
You must activate your Gusto benefits card before you can use it. You can activate it by phone or online in the Benefits Card Hub.
You'll set up a PIN during activation, but note that no vendors should require a PIN.
Activate your card by phone
Call the number on the sticker applied to your card. You will be prompted to provide the following information:
Activate your card online in the Benefits Card Hub
You will only receive one card even if you are enrolled in multiple pre-tax benefit accounts. The card automatically applies expenses to the appropriate account.
You set up a PIN when you activate your Gusto benefits card. However, you should not have to use it. Always check out using the credit option. If prompted for a PIN, you should always try to bypass the option.
Most vendors do not require a PIN to complete a transaction, even if prompted.
You may need to update a Gusto benefits card if one is lost or stolen, or if you no longer wish for your dependent to have an active card. Follow the steps below to manage your cards.
Lock a card
Close a card
Here's how to close one of the cards associated with your account. For example, you may do this if you no longer wish for your dependent to have an active card.
Replace a card
You have 60 days from the date of a transaction to dispute it for fraud. After 60 days, the transaction cannot be disputed. If you have a transaction you need to dispute, fill out this form.
What happens next?
Your dispute will go through an initial review within 3–5 business days. After the initial review, if deemed eligible for dispute, a provisional credit will be applied within 5–7 business days. If the dispute is approved, the credit will remain. If the dispute is denied, the credit will be removed. In total this typically takes around 60 days.
You may be able to request a Gusto benefits card for eligible dependents. There are two important consequences to ordering a dependent card that you must be aware of.
Here's how to request a Gusto benefits card for your dependent.
You can review and manage your expenses in the Benefits Card Hub: Under "My Accounts," click HSA. See the steps above on how to register or sign in to the Benefits Card Hub.
Add or edit a reimbursement method
You can choose to be reimbursed by check, direct deposit, Venmo, or PayPal. Follow these steps to set up or change your reimbursement method:
Note: Adding a bank account can take 2–3 business days to verify.
Receipt requirements
Unlike FSAs and commuter benefits, you do not 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.
Submit an expense for reimbursement
If you paid out of pocket for an eligible expense, you may submit it for reimbursement as long as the service was rendered during your coverage period, and the final date to submit claims has not passed.
To submit an expense for reimbursement:
If the information can be validated immediately, your claim will be approved on the spot. If additional review is required you will receive an email when the claim has been processed. This is typically 3-5 business days
When you'll be reimbursed
If your claim is approved, you’ll be reimbursed using the reimbursement method you selected above.
Here's how the reimbursement is sent, based on the reimbursement method you've chosen:
Submit an expense for reimbursement after leaving your company
If your benefit has a runout period, you may have extra time to submit claims for qualifying expenses incurred during your employment. You can confirm your last day to submit an expense in the Benefits Card Hub.
If you did not register for your Benefits Card Hub during your employment, contact Gusto for help.
Pay a bill directly
If you receive a bill for an eligible expense, you can pay it via check directly from your associated pre-tax benefit account.
If you've already paid the bill and want to be reimbursed, go to the header above titled "Submit an expense for reimbursement."
Here's how to pay a bill:
If all the required information can be identified in the receipt, your claim will be automatically approved and the payment will be made to the provider by check. If not, the claim will be manually reviewed within 3-5 business days. You will receive an email once the claim has been reviewed and processed.
Note: Checks expire after 180 days. You will receive an email if a check is about to expire. If the check was sent to your provider please connect with them first about the payment.
Once your HSA balance is $500 or more, you have the option to invest your funds. You can start investing from your Benefits Card Hub account. You must invest a minimum of $100 at a time.
There are two options when investing your HSA funds: self-directed or managed.
| Managed | Self-Directed | |
|---|---|---|
| Investment types | ETFs | ETFs (approximately 30 preselected) |
| Investment advice | RIA + automated portfolio reviews and rebalancing | Self-serve research tools |
| Fees | 0.25% annual management fee, paid monthly | No administration, management, or trade fees |
| Best for… | Newer investors, participants short on time | Participants with some investment experience and ability to research funds |
| Symbol | Name | Type | Category | Cons. (20% Stock) | Mod Cons. (40% Stock) | Mod. (60% Stock) | Mod Agg. (75% Stock) | Agg. (90% Stock) |
|---|---|---|---|---|---|---|---|---|
| N/A | Cash option - UMB | ETF | Short-Term Bond | 5% | 5% | 3% | 2% | 0% |
| VCSH | Short-Term Corp Bd Idx ETF Vanguard | ETF | Short-Term Bond | 5% | 5% | 2% | 3% | 0% |
| BND | US Total Bond Market Index ETF Vanguard | ETF | Intermediate Core Bond | 30% | 21% | 14% | 8% | 5% |
| HTRB | HARTFORD TOTAL RTRN BOND ETF | ETF | Intermediate Core-Plus Bond | 30% | 20% | 14% | 8% | 5% |
| SCHP | Schwab US TIPS ETF | ETF | Inflation-Protected Bond | 5% | 4% | 3% | 2% | 0% |
| IGOV | iShares International Treasury Bond ETF | ETF | Global Bond | 1% | 1% | 1% | 0% | 0% |
| USHY | iShares Broad USD High Yield Corporate Bond ETF | ETF | High Yield Bond | 4% | 4% | 3% | 1% | 0% |
| SCHD | US Dividend Equity ETF Schwab | ETF | Large Value | 4% | 8% | 9% | 12% | 13% |
| IVV | Core S&P 500 iShares ETF | ETF | Large Blend | 4% | 8% | 10% | 11% | 13% |
| VUG | Growth ETF Vanguard | ETF | Large Growth | 4% | 8% | 10% | 14% | 15% |
| VO | Mid-Cap ETF Vanguard | ETF | Mid-Cap Blend | 2% | 4% | 9% | 10% | 14% |
| IWN | Russell 2000 Value ETF iShares | ETF | Small Value | 1% | 1% | 2% | 2% | 3% |
| VTWO | Vanguard Russell 2000 ETF | ETF | Small Blend | 0% | 1% | 2% | 2% | 4% |
| IWO | Russell 2000 Growth ETF iShares | ETF | Small Growth | 1% | 1% | 2% | 3% | 4% |
| IEFA | Core MSCI EAFE iShares | ETF | Foreign Large Blend | 4% | 8% | 11% | 14% | 16% |
| SCZ | MSCI EAFE Small-Cap ETF iShares | ETF | Foreign Small/Mid Blend | 0% | 1% | 2% | 3% | 4% |
| SCHE | Emerging Markets Equity ETF Schwab | ETF | Diversified Emerging Mkts | 0% | 0% | 3% | 4% | 4% |
| Symbol | Name | Type | Category |
|---|---|---|---|
| VCSH | Short-Term Corp Bd Idx ETF Vanguard | ETF | Short-Term Bond |
| BND | US Total Bond Market Index ETF Vanguard | ETF | Intermediate Core Bond |
| HTRB | HARTFORD TOTAL RTRN BOND ETF | ETF | Intermediate Core-Plus Bond |
| SCHP | Schwab US TIPS ETF | ETF | Inflation-Protected Bond |
| IGOV | iShares International Treasury Bond ETF | ETF | Global Bond |
| USHY | iShares Broad USD High Yield Corporate Bond ETF | ETF | High Yield Bond |
| SCHD | US Dividend Equity ETF Schwab | ETF | Large Value |
| VONV | Vanguard Russell 1000 Value ETF | ETF | Large Value |
| IVV | Core S&P 500 iShares ETF | ETF | Large Blend |
| OEF | S&P 100 Index iShares | ETF | Large Blend |
| VUG | Growth ETF Vanguard | ETF | Large Growth |
| QQQ | Invesco QQQ Trust Series 1 | ETF | Large Growth |
| IWS | Russell Mid-Cap Value iShares | ETF | Mid-Cap Value |
| VO | Mid-Cap ETF Vanguard | ETF | Mid-Cap Blend |
| IWP | Russell Mid-Cap Growth iShares | ETF | Mid-Cap Growth |
| IWN | Russell 2000 Value ETF iShares | ETF | Small Value |
| VTWO | Vanguard Russell 2000 ETF | ETF | Small Blend |
| IWO | Russell 2000 Growth ETF iShares | ETF | Small Growth |
| ICF | iShares Cohen & Steers REIT ETF | ETF | Real Estate |
| IEFA | Core MSCI EAFE iShares | ETF | Foreign Large Blend |
| SCZ | MSCI EAFE Small-Cap ETF iShares | ETF | Foreign Small/Mid Blend |
| SCHE | Emerging Markets Equity ETF Schwab | ETF | Diversified Emerging Mkts |
Checks are not available.
You can cancel a recurring reimbursement by signing in to your Benefits Card Hub.
Unlike FSAs and commuter benefits, an HSA is your personal bank account—you alone are responsible for making sure you spend your funds on qualifying expenses. Contact us if you need to correct a non-qualifying transaction.
Choose a section below for more ways to manage your HSA.
You can have as many HSAs as you want. However, once you're enrolled in a Gusto HSA, you can consolidate your HSAs if you wish. If you'd like to close any existing HSAs and transfer the funds into your Gusto HSA, here's how:
Your previous HSA provider will then close your account and mail a check to transfer the funds into your Gusto HSA. This can take up to 6–8 weeks depending on how quickly your HSA provider processes the form.
By default, you'll be sent periodic statements by mail, which costs $1.00. To opt out of statement fees, access your Benefits Card Hub and follow the instructions in the notifications section of your homepage. Once you change this setting, you'll only receive electronic statements and the fee will no longer be applied.
When you make contributions outside of payroll, here are some IRS requirements to keep in mind:
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.
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:
Find your tax forms
UMB 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 Benefits Card Hub:
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 close 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 Elevate moving forward. Your balance does not expire—the HSA will be converted into an individual account, and Elevate will email you within 10 business days of the plan's end date about how to manage your individual HSA through Elevate. Learn more in the section below called "Managing your HSA directly through Elevate."
If you become ineligible for an HSA or choose not to renew your HSA during open enrollment, your HSA will still be managed through your Benefits Card Hub.
When an employee leaves the company, the HSA will be converted into an individual account. The employee will receive an email on how to manage their HSA with Elevate within 10 business days of the HSA end date. Learn more in the section below called "Managing your HSA directly through Elevate."
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.
If your plan ends or you leave your company, here's what happens:
Employees are responsible for the maintenance fees for their HSAs. The email you receive about managing the HSA through Elevate will provide more information on this.