How do you update the HSA contribution limits to take effect in the upcoming open enrollment?

Health Savings Account (HSA) annual contribution limits are defined by the IRS and must be manually updated within Workday. The correct procedure is to edit the existing HSA benefit plan using the "Edit Benefit Plan" task. The administrator must specify an effective date for the change, which should be the first day of the new plan year (e.g., January 1st). On the effective-dated record, the administrator updates the annual contribution limit fields to reflect the new IRS amounts. This ensures that for the upcoming open enrollment and the new plan year, the correct limits are enforced for employee elections and employer contributions.

A. While payroll processes HSA deductions, the annual contribution limits that govern elections are configured on the HSA benefit plan within the Benefits application.
C. The system does not automatically prompt for HSA limit updates when initiating open enrollment. This is a manual configuration task that must be completed beforehand.
D. Workday does not automatically update statutory limits like those for HSAs. The tenant administrator is responsible for maintaining compliance by updating these values annually.

1. Workday Benefits Administration Guide. (2023). "Set Up Health Savings Accounts." Section: Maintaining HSA Plans. The guide specifies that administrators must edit the plan with a new effective date to update annual contribution limits.

2. Workday Community. (2023). "Reference: Health Savings Account (HSA) Annual Contribution and Catch-Up Limits." This resource provides the annual limits and implicitly requires administrators to apply these updates to their tenant configuration.