March 8, 2018
IRS Changes to HSA Contributions: Workforce Go! HCM Update
Workforce Go! HCM has been updated to reflect the changes announced by the Internal Revenue Service (IRS) to the post- and pre-tax health savings account (HSA) limits per family for the 2018 calendar year. The changes are outlined in the IRS Rev. Proc. 2018-18 under Internal Revenue Bulletin No. 2018-10.
2018 HSA contribution limits per calendar year & Product Updates
Individual with family coverage
Change: Down from $6,900
Update in Workforce Go! HCM See HSA Post-Tax Family and HSA Pre-Tax Family.
Individual age 55 and older with family coverage
Change: down from $7,900
Update in Workforce Go! HCM See HSA Post-Tax Family (+55) and HSA Pre-Tax Family (+55) catch up.
Recommendations: As a best practice, we suggest you review the year-to-date amount deducted per employee for HSA in 2018. Determine if any employee exceeded the $6,850 family limit (or $7,850 catch-up) prior to the announcement of the reduced amount. Expect potential payroll adjustments to correct wages and taxes.
We also encourage you to alert your employees of the change, and provide proper instructions for making any overage corrections before December 31 to avoid penalties.
Please contact your Workforce Go! customer service representative if you have any questions!