We are often asked if Seasonal Employees are eligible for an HSA, and the answer is "Yes!" (Depending on the circumstances.) This article explores the criteria that make seasonal staff eligible for an HSA.
Seasonal staff members, who are considered employees of the company (and not contractors or volunteers), become eligible for an HSA if they receive T4 income during the season of their employment. This criteria aligns with the general eligibility requirements for HSAs, ensuring that only true employees of the company are on the plan, because it has to be an employer-provided benefit. If the workers are contractors that are self-employed and contracting out to the company, an HSA is not the right fit, because the contractors are not employees of the company.
We often see that a company will set these employees up on distribution schedules other than annual, that way the company is protected against the employee using up all the funds at once.
Sometimes, we see seasonal employees on plans that are based on hours worked (not on a set plan limit). For those seeking a plan based on hours worked, a "custom" plan limit option can be explored by contacting the support team at support@getmyhsa.com.
When the Seasonal Employees are not active, their accounts can simply be "Locked" for that duration of time. This option will stop the employee from being able to access their account or submit claims during the off-season.
To initiate this process, please open a live chat or reach out to us via email at support@getmyhsa.com and we'd be more than happy to assist you!