The Wellness Spending Account (WSA) reimbursement freeze feature offers an efficient solution for employers to manage year-end payroll and tax obligations. By setting a specific cut-off date, employers can freeze WSA claim reimbursements, which allows payroll teams to properly categorize these expenses as taxable benefits for the following year. Here’s a step-by-step guide for Plan Admins on how to set up the WSA claim payout freeze over year-end on your company's plans:
Access the Company's Plans Page:
Begin by navigating to the "Plans" page in your Plan Admin portal.
In the WSA Reimbursement Freeze dropdown menu, select the class the freeze should be applied to:
Select the WSA Freeze Start Date
Select Save and the Freeze will be applied to the selected plan.
Impact of the Freeze
Once the freeze is activated, any claims submitted the day of or after the cut-off date will be held until the first bank file in January (for this year, that lands on January 2nd). For example, if you enacted the freeze with a start date of Dec 16th, 2025, then any claims that are approved or submitted Dec 16th or later will be held in the freeze until January 2nd, 2026.
Employees will still be able to submit claims as usual, but they will receive a notification informing them that any claims submitted during the freeze period won’t be reimbursed until the new year. These held claims will also be recorded as taxable benefits for 2026.
By following these steps, you can ensure a smooth transition through year-end while allowing the payroll team sufficient time to handle taxable benefit allocations accurately.
Questions about the freeze or need helping setting it up? Reach out to us at support@getmyhsa.com