Pre-Tax Benefits 101

Pre Tax Benefit Contribution Cadence

If you are enrolled in a pre tax benefit, you will notice that with each paycheck you receive from your employer, there will be an amount deducted for your pre tax benefits. This amount is then contributed to your Benepass account, however, while the annual amount won't change, the contribution may look slightly different depending on the benefit you are enrolled in.

This is because each pre tax benefit is contributed at a determined cadence:

  • Health Care FSA (HCFSA): HCFSAs are contributed upfront. For example, if your annual election is $3,200, you will see the full amount contributed to your Benepass account even if your employer is deducting this from your paycheck in smaller amounts throughout the year. 

  • Limited Purpose FSA (LPFSA): Like HCFSAs, LPFSAs are also contributed upfront. 

  • Dependent Care FSA (DCFSA): DCFSAs are contributed at a payroll cadence, therefore, you will receive the same amount you were deducted from your paycheck right around your payday. For example, if your annual election is $2,500, you will not receive $2,500 upfront like with your HCFSA. Instead, you will receive a prorated amount that matches your paycheck deduction which is also calculated based on the number of paychecks you will receive within the plan year.
  • Heath Savings Account (HSA): Like DCFSAs, HSAs employee contributions are also contributed at a payroll cadence. The only exception to this is if your employer also provides an employer contribution that they provide upfront, in which case you will be able to see a larger amount in your account named "Employer Contribution". However, the employee contributions are provided as per your paycheck deductions.
    *Note: this cadence only applies to employer/employee contributions, not to personal contributions. 

  • Commuter: Commuter benefits like pre tax Transit and Parking are contributed on a monthly basis.
    *Note: your payroll deductions will most likely happen every paycheck, however, the contribution is provided monthly. 

Lastly, the contribution amount is predetermined according to what you choose during the open enrollment period. This amount typically doesn't change, except for Commuter benefits, where you can change the amount every month if desired, or unless you go through a Qualifying Life Event (QLE). You can learn more about your pre tax election and QLEs here

FAQs

1. Help! I can't find my DCFSA or HSA contribution in my account. 
If you haven't received a contribution and you also haven't received your next paycheck yet, that's the reason why. You will receive your next contribution on your payday (or up to 24 hours later which allows for our system to fully sync). If you received your paycheck, and it's been over 24 hours, please contact our Support team for help. 

 

2. I'm still missing my HSA contribution and I was already deducted for it in my paycheck.
In order to deposit any HSA funds into your Benepass HSA account, you need to have applied for a Benepass HSA account first. This is a simple process you do by filling out a form. If you haven't filled it out yet, and you've already been deducted an HSA deduction from your paycheck, this is why you are missing a contribution.
As a next step, you should fill out the form so that our team can open your HSA account within 1-2 weeks. Once open, we will provide all pending contributions. 

 

3. I received my HCFSA/LPFSA contribution already, will I receive any more?
Since your HCFSA and LPFSAs provide contributions upfront, you will only receive one contribution every plan year. However, if you had either benefit in the previous plan year with unused funds, you may see a "transfer" in your account after the runout period has ended for up to the maximum amount the IRS allows to roll over in that plan year. This transfer is not an additional contribution, but a rollover of unused funds. 

Questions? We are happy to help! Please reach out to Benepass Support for any assistance.

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