Understanding HSA Coverage Type and New Benefit Types

Introduction

Managing employee benefits accurately is essential for ensuring smooth payroll processing. With this update, Keka enhances the Benefits module by introducing HSA Coverage Type at the employee enrollment level and support for additional benefit categories.

These improvements ensure payroll calculations are more accurate, benefit configurations align with modern payroll standards, and administrators can manage benefits more efficiently.

With this feature, organizations can:

• Capture HSA coverage details at the employee level

• Configure additional industry-standard benefit types

• Set up standardized contribution configurations

• Reduce payroll errors caused by incomplete benefit data

HSA Coverage Type in Employee Enrolment

To improve payroll accuracy, a new field called HSA Coverage Type is introduced when assigning an HSA (Health Savings Account) benefit to employees.

Previously, HSA details were defined only at the company benefit level. Now, coverage type is captured during employee enrollment, ensuring payroll calculations reflect the correct eligibility.

Available Coverage Types

The following options are available:

• Single (Default value)

• Family

The selected coverage type determines the employee’s HSA contribution eligibility and limits, which directly impacts payroll calculations.

Configuring HSA Benefits

1. Navigate to Payroll → Benefits → Create Benefit

   

   2. A drop down will appear on the screen, select create benefit manually

   

   3. Click on Health Saving Account

   

   4. Fill in the necessary details

   

   5. You can also click for self enroll , which will let the employee to enroll for the particular benefit by themselves.

   

   6. Finally click on the save button.

   

   7. Once you click on the save option, you will see an option to Assign Employees.

   

   8. Select the employees from the list.

   

   9. You can choose the HSA type from the drop down button.

   10. Finally you can click on Assign employees.

   

   Assigning Employees to HSA benefit

   1. Under the benefit section, select the legal entity.

   2. You will see Health Benefit tab, click on it.

   3. In the HSA section, click on the three dot, and select Assign Employees.

   

   4. Select the employee,review and confirm the data and assign the benefit to the employee.