Posted By: Patsy Cline
HSA Direct Deposit Timing - 02/18/21 02:09 PM
Employee designates a dollar amount to have deposited to an HSA account with every payroll (pretax). Payroll is deposited to employee checking account as of payroll date. The HSA funds are deposited to the bank where the employer as set up the HSA accounts but are delayed for 3 - 5 days following payroll. The employer switched banks from the one used in 2020. Previously the HSA deposit was effective the same date as payroll. The HSA bank the employer started using in 2021 says it is standard to have a delay. This was the response:
• The standard time frame for Employee’s HSA contribution to be deposited into their account is 3-5 business days after the file feed has been sent to HSA Bank. File feeds are sent Tuesday's and Friday's.
• The standard time frame for HSA Employer contributions deposits take 3 to 5 business days from the Payroll in which the Employer contribution was charged
This does not seem correct... but I do not know ACH rules. Thoughts?
• The standard time frame for Employee’s HSA contribution to be deposited into their account is 3-5 business days after the file feed has been sent to HSA Bank. File feeds are sent Tuesday's and Friday's.
• The standard time frame for HSA Employer contributions deposits take 3 to 5 business days from the Payroll in which the Employer contribution was charged
This does not seem correct... but I do not know ACH rules. Thoughts?