Will members of a benefit plan receive a set amount of contributions on a weekly, bi-weekly, semi-monthly, or monthly basis? If so, you can use recurring contributions.
How to set up recurring contributions
Note for Partner Administrators
Select the desired organization from the Organizations tab before following the steps below.
Select the Benefits tab.
Choose the benefit plan you want to update.
Note: You can only set up recurring contributions for pending benefit plans.
Select Plan from the benefit side menus.
In the Funding Details section, scroll down to Automated Recurring Contributions and check the Yes box.
Enter your preferred contribution schedule and earliest contribution date.
Save your updates.
Only for Pending Benefits
You can only set up recurring benefits for Pending Benefits. You cannot set up recurring contributions for active benefits.
Amounts based on enrollment info
Amounts for recurring contributions are based on the information provided during benefit enrollment.
Contribution schedules
The Contribution Schedule determines the frequency of recurring contributions. Below are the possible options:
Weekly (Once per week)
Bi-Weekly (Every two weeks)
Semi-Monthly (Twice per month)
Monthly (Once per month)
Earliest contribution date
The first set of recurring contributions will not be made before the earliest contribution date. Please select your date accordingly.
Accuracy reminders
Keep these guidelines in mind to ensure accurate contributions and avoid duplicate errors.
Choose one method per contribution set: Choose automated recurring contributions, payroll sync, or file uploads for each contribution set. Don't mix methods to avoid double-counting.
Multiple methods may still be used. You can upload quarterly or annual files, even with recurring contributions enabled. Just avoid using multiple methods for the same set.
Examples
You may set up automated recurring contributions for monthly employer contributions and upload a file for a one-time set of annual contributions.
However, avoid using automated recurring contributions and uploading a file for the same set of monthly employer contributions.
FSA and LP-FSA recurring contributions
Normally, recurring contribution amounts update the balance of a benefit account. Flexible spending accounts (FSAs) and limited-purpose flexible spending accounts (LP-FSAs) work a little bit differently. At the beginning of the plan year, a member's FSA and LP-FSA starting balance is the sum of the employee's annual election amount and the employer's initial funding amount. In other words, members have access to all of their planned allotment of FSA and LP-FSA funding on day one.
For this reason, FSA and LP-FSA recurring contributions work differently. Recurring contributions are recorded for reporting purposes only and do not impact the member's balance.
Why use recurring contributions for FSAs and LP-FSAs?
Setting up recurring contributions for FSAs and LP-FSAs allows administrators to track and manage contribution reporting across all benefit types in one place.