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 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, scroll down to Automated Recurring Contributions and check the Yes box.
Enter your preferred contribution schedule and earliest contribution date.
Save your updates.
Pending and active benefits only
You can only set up recurring contributions for pending and active benefits.
Setting contribution amounts
During enrollment
You can enter recurring contribution amounts (both employer contributions and employee deductions) during enrollment. To learn more, check out "Enroll members in benefits."
After enrollment
You can also update recurring contribution amounts after enrollment. To learn more, check out "Update recurring contribution amounts."
Contribution schedules
The contribution schedule determines the frequency of recurring contributions. Below are the possible options:
Weekly (Once per week)
Bi-Weekly, 26 payouts (Every two weeks, including months with three payroll cycles)
Bi-Weekly, 24 payouts (Every two weeks, capped at two payouts per month)
Semi-Monthly (Twice per month)
Monthly (Once per month)
Most benefits should use the standard 26-payout Bi-Weekly schedule. However, benefits with a monthly contribution limit, such as commuter benefits, can be overfunded twice a year when a month has three biweekly cycles. Bi-Weekly, 24 payouts avoid this by skipping the third cycle in those months, so members always receive exactly two payouts per month.
Bi-Weekly, 24 payouts, and monthly-limited benefits
Those with a monthly contribution limit can receive an unintended third payout in months with three biweekly cycles. If this applies to your benefit, choose Bi-Weekly, 24 payouts instead of the standard Bi-Weekly schedule to keep contributions at exactly two per month, 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.
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.
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.
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.