As part of our benefits offering, some employees may choose to transition from a Preferred Provider Organization (PPO) plan to a High Deductible Health Plan (HDHP) paired with a Health Savings Account (HSA). While HSAs are a powerful way to save for healthcare expenses, they work a bit differently than traditional plans—especially if this is your first time enrolling in one. Below is a quick overview of how HSAs work and answers to some common questions we’ve received during open enrollment.
What is an HSA and how does it work?
A Health Savings Account (HSA) is a tax-advantaged account that allows you to save money specifically for qualified healthcare expenses. If you enroll in an HDHP, you are eligible to have an HSA. Money in the account can be used for things like doctor visits, prescriptions, and other eligible medical costs.
HSAs offer three important tax advantages:
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Tax-free contributions when deducted from your paycheck
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Tax-free growth on any interest or investment earnings
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Tax-free withdrawals when used for qualified healthcare expenses
Another benefit is that the account belongs to you. The funds roll over each year and remain yours even if you change jobs or retire.
Does the company contribute to my HSA?
Yes. If you enroll in an HDHP with an HSA, the company contributes to your account each pay period.
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HDHP Base Plan: $1,500 annually ($62.50 per payroll)
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HDHP Buy-Up Plan: $600 annually ($25 per payroll)
These employer contributions are deposited automatically throughout the year.
Why didn’t I choose my HSA contribution during open enrollment?
Some employees noticed they were not prompted to select their personal HSA contribution during the March open enrollment period. This primarily affects employees who are transitioning from a PPO/FSA plan to an HDHP/HSA.
Because this open enrollment occurs mid-cycle in our benefits year, the enrollment system could not initially allow new HSA payroll contributions for those switching plan types. However, we are now providing a way for employees to elect their contribution amount through Paycom.
How do I start or update my HSA employee contribution?
Employees can now elect their HSA contribution through Paycom Ask Here. Use our handy HSA contribution calculator below to guide you in choosing an amount that is right for you.
Please complete this by April 1, 2026 if you want to begin payroll contributions when the new plan starts.
Steps:
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Log in to Paycom Employee Self-Service
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Select the Ask Here icon (question mark in a conversation bubble)
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Select Benefits
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Select “HSA Contribution 4/01/2026”
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Enter your desired per-paycheck contribution amount
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Submit the request
If you need help determining your contribution amount, you can reference the HSA Employee Contribution Calculator (March 2026) provided by HR.
Can I still contribute later if I don’t set it up now?
Yes. If you choose not to begin employee contributions right away, you will have another opportunity during June open enrollment (effective July 1, 2026 – June 30, 2027). At that point, you can begin contributing or increase your contribution amount. With six months remaining in the year, you can still make significant contributions and even choose a higher per-paycheck amount if you wish to reach your annual maximum.
What is the maximum I can contribute in 2026?
For new HSA accounts that begin April 1, your HSA contribution limit for 2026 is prorated based on the number of months you are eligible.
For April through December (9 months of eligibility), the limits are:
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Individual coverage: up to $3,300
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Family coverage: up to $6,562.50
These limits follow IRS rules that state your annual contribution is based on the number of months you are eligible for an HSA during the year.
Open Enrollment closes Friday, March 13, 2026, at 10 PM PST. For full details, please consult this Insider article.
