Do members of a benefit plan receive a set contribution amount every payroll cycle? Recurring contributions fund their accounts automatically on a schedule that matches the organization's payroll calendar, whether that's a standard schedule like bi-weekly or a custom schedule you build.
How to set up recurring contributions
Note for admins managing multiple organizations
Choose the appropriate organization or division from the Organizations tab before following the steps below.
Select the Benefits tab.
Choose the benefit plan you want to update.
Select Plan from the benefit side menus.
In the Funding Details section, go to Automated Recurring Contributions and select Yes.
Choose a schedule from the Contribution Schedule menu.
For Semi-Monthly, select the two dates contributions should occur each month.
For Custom, select the days or dates contributions should occur.
Review the calculated contribution start date and the planned contribution dates.
Select Save.
Pending and active benefits only
You can only set up recurring contributions for pending and active benefits.
Choose a contribution schedule
The contribution schedule determines how often recurring contributions occur. Choose the schedule that matches the organization's payroll calendar.
Schedule | How often contributions occur | Best for |
Weekly | Once per week | Weekly payrolls |
Bi-Weekly, 26 payouts | Every two weeks, including months with three payroll cycles | Most bi-weekly payrolls |
Bi-Weekly, 24 payouts | Every two weeks, capped at two payouts per month | Benefits with a monthly contribution limit, like commuter benefits |
Semi-Monthly | Twice per month, on two dates you select | Payrolls that run on two set dates each month |
Monthly | Once per month | Monthly payrolls |
Quarterly | Once per quarter | Quarterly employer contributions |
Annually | Once per year | Annual employer contributions |
Custom | On the days or dates you define | Payroll calendars that don't fit a standard schedule |
Set semi-monthly contribution dates
Semi-monthly contributions occur twice per month. Select any two dates on the calendar to match the organization's pay dates, such as the 5th and 20th.
Create a custom schedule
If the organization's payroll calendar doesn't match a standard schedule, build a custom one.
Choose Custom from the Contribution Schedule menu.
Select how often contributions repeat.
Select the days or dates contributions should occur.
Review the planned contribution dates to make sure they match the payroll calendar.
Bi-Weekly, 24 payouts, and monthly-limited benefits
Most benefits should use the standard Bi-Weekly, 26 payouts schedule. However, benefits with a monthly contribution limit, like commuter benefits, can be overfunded twice a year in months with three bi-weekly cycles. Bi-Weekly, 24 payouts skips the third cycle in those months, so members receive exactly two payouts per month and 24 per year.
Members who enroll partway through a skipped month will follow the same schedule as existing members on the benefit. If they enroll after that month's first payout has already occurred, they'll pick up at the second payout and miss the third, along with everyone else.
Review planned contribution dates
After you choose a schedule, the Health Wallet Manager shows every planned contribution date for the benefit plan. Check these dates against the organization's payroll calendar before you save, so there are no surprises once contributions start.
Tip for matching payroll
Planned contribution dates are pay dates. To update amounts for an upcoming contribution, make changes at least five (5) days before the pay date. To learn more, see update recurring contribution amounts.
How the contribution start date is calculated
The platform calculates the first contribution date from the plan start date and the schedule you choose. You'll see the calculated date with the planned contribution dates before you save.
Language note
The Contributions Start Date field replaces the Earliest Contribution Date field.
Set contributions amounts
Recurring contributions use the employer contribution and employee deduction amounts entered for each member.
During enrollment
You can enter recurring contribution amounts (both employer contributions and employee deductions) when you enroll members in benefits.
After enrollment
You can also update recurring contribution amounts after enrollment.
To save time, you can also set default employer contribution amounts that apply to every member enrolled in the benefit plan.
Avoid duplicate contributions
Keep these guidelines in mind to ensure accurate contributions and avoid duplicate errors.
Use one method per contribution set. Choose automated recurring contributions, payroll sync, or file uploads for each set of contributions. Mixing methods can double-count contributions.
Use different methods for different sets. You can still upload quarterly or annual files with recurring contributions turned on, as long as each method covers a different set.
Avoid duplicate errors
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 both automated recurring contributions and uploading a file for the same set of monthly employer contributions.
Recurring contributions for flexible spending accounts (FSAs) and limited-purpose FSAs (LP-FSAs)
Normally, recurring contributions update the balance of a benefit account. FSAs and LP-FSAs work a little differently. At the beginning of the plan year, a member's FSA or 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 FSA and LP-FSA funding on day one.
For this reason, FSA and LP-FSA 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 lets administrators track and manage contribution reporting across all benefit types in one place.