What happens to a commuter benefit when an employee leaves the company?
When an employee leaves the company and has a commuter benefit, they have 90 days to use any remaining funds on their transit card. Any unused pre-tax funds after this period are forfeited back to the employer, while any post-tax funds are returned to the employee/member.
For parking benefits, the card is deactivated immediately, and pre-tax amounts are forfeited to the employer and post-tax amounts returned to the employee/member.
‘Pay Me Back' elections allow members 180 days to submit claims for reimbursement, after which any unclaimed balance is forfeited to the employer. A $25 processing fee per terminated account is retained by HealthEquity from the forfeited balances.
What happens to FSA when an employee quits or is let go?
When an employee quits or is let go, the termination of their Flexible Spending Account (FSA) must be recorded either by entering the termination date in their profile manually or updating by file.
Upon termination, the plan and any associated cards are canceled within 24-48 hours. The time frame for submitting claims for eligible expenses incurred while employed depends on the employer's plan setup, which can vary. Options include submitting claims within a specific number of days or months after the termination date or the end of the coverage month.
Any unclaimed funds after the allowed period are forfeited and returned to the employer. The FSA is a use-it-or-lose-it account, and all funds are prefunded at the start of the plan year.
Why can't I update a participant?
To make updates or changes, including submitting enrollments, you will need to be listed as a ‘Super User Client Contact’ in the Client Portal. If you are getting an error stating you cannot make changes, please reach out to the listed ‘Super User Client Contact’ in your organization and ask them to update your user access to ‘Super.’
How long can an employee access their FSA funds after termination?
To verify how long a termed employee will have to access their funds, you will need to check your Offer Plan Rules:
Click Benefits > Benefits Programs.
Find the active program and click ‘Yes’ in the Code column.
Scroll to view section ‘C. ELIGIBILITY & ENROLLMENT RULES’ and view rule ‘6. Coverage End Date Rule (ET)’ to view your coverage end date rule.
If there is a term date listed, the employee will not have more time to submit claims.
If there are other options chosen, you will then need to check your plan setup to view the Mid-Year Claims Deadline.
To view the Mid-Year Claims Deadline:
Click Benefits > Benefits Programs.
Click the name of the current plan year.
Find the ‘Plan Period' section to view the Mid-Year Claims Deadline.
This Applies to the Mid-Year Term or Cancel (when Coverage End Date < Plan End Date).
View the number listed in the box and the days or months section to verify how many months or days a termed employee will have to submit their claims.
How do I correct a participant or dependent information?
If a member’s name was misspelled, you may update directly on our employer portal:
Once logged in, click on PARTICIPANTS tab.
Click SEARCH, enter current member name.
Click on member last name under 'SEARCH' results.
Once on member profile, click on UPDATE PROFILE (top right corner).
Correct any changes needed.
Click NEXT then SAVE PROFILE.
NOTE: Once a name correction has been made, the member will need to request a replacement card to have a new card issued with an updated name. Requests may be made via their member portal. (Please allow 24-48 hours for the system to update before a replacement card request is made through the member portal.)
For explicitly named dependents such as HRA accounts:
Once logged in, click on PARTICIPANTS tab.
Click SEARCH, enter current member name.
Click on member last name under SEARCH results.
Click on HEALTHCARE & DEPENDENT CARE.
Under appropriate plan year, click on VIEW next to: Explicitly Named Dependents (bottom page).
Correct any changes needed, then hit SAVE.
If the option is greyed out, please contact our HealthEquity client services team requesting an update.
If name change/correction is needed for additional dependent cards, members will need to contact our member services team to request an update. Please allow 24-48 hours for a system update before a replacement card request is made through the portal
How do I view member payroll deductions posting?
To view member payroll deductions posting to employee accounts, run the Account Activity Report.
Program Sponsors who want to reconcile contributions and payments should view the Contributions & Payments Report, which is based on issued transactions (rather than authorized transactions) and is consistent with the Funding Report.
Note: Detailed report information can be found by clicking the info icon next to each report.
We received a refund check - how can we determine who it’s for?
Each quarter, HealthEquity will return any unclaimed member Pay Me Back and Pay My Provider funds via check if they have remained unclaimed for 18 months after the issue date. The funds must be handled according to the client’s company policy and the governing plan documents. You will want to contact your local state government for any information on the Escheatment process.
An unclaimed check report may be generated to confirm who the refund is for:
1. From the dashboard, click on ‘View All’ under the Reports section.
2. Select the ‘Unclaimed Checks’ report.
3. Based on the check memo details choose the appropriate plan year, and quarter.
4. Click ‘Generate Report’ to view details.
If the check does not provide memo details, please reach out to our HealthEquity client services team for further research.
I have an employee who terminated, what process do I need to follow?
When an employee is terminated, you will need to update the member’s profile in the client portal by entering a termination date manually or by updating the termination date via file.
Why am I still being billed for employees that I terminated?
We bill for the whole plan year, including the run-out period for the admin fee, regardless of if the employee has terminated or has ended their coverage.
When you are being billed for the Funding, these amounts originate as your employees are utilizing the benefit. Remember that all employees will have a ‘Claim it by date’ (run-out period) for which they can submit claims. With funding, you will not receive a charge if funds are not being utilized.
If you should have any questions or concerns regarding the admin fees, please review your Order Agreement (Contract) and view our General Terms and Conditions for all accounts.