5 Reasons You Should Offer Employees an HSA

By Clarity Benefit Solutions, a Deltek Marketplace Partner

It’s no secret that the COVID-19 pandemic has drastically altered the way we live. Having to adjust so quickly to stay-at-home orders and limited capacity also caused a great shift in the way we work.

Today, many employers have switched to hybrid or fully remote models, meaning that their employees are no longer limited to a specific geographic region. This shift means that applicant pools are larger as remote jobs can now be filled by candidates living anywhere. With such large applicant pools and so many options for employees, employers must offer unique and evolved benefits for an evolving workforce.

You’ve probably heard about clever tactics being used recently to attract applicants. But quality employees don’t stay for the company game room or gym membership. They stay for a good workplace culture (virtually or in-person) supplemented by quality benefits that set employees up for secure futures.

One of those quality benefits should be a Health Savings Account (HSA). Let’s take a look at what HSAs are and how they can provide added value to your organization.

What is a health savings account?

A Health Savings Account (HSA) is an incredible tool for employees to save money for upcoming healthcare expenses. Anyone with a high-deductible health plan can use this triple-tax advantage plan to set aside and invest pre-tax dollars from their paychecks to cover a range of health care purchases.

HSAs offer tax-free contributions, earnings and distributions and can roll over from year-to-year and job to job. Not to mention, they can be used on thousands of items at the HSA Store. Depending on the HSA, employees can even fund investments that can help build wealth over time.

HSAs are beneficial for the employer because they can attract top talent who may have many options in the job market. The employee benefits because they can enjoy a flexible saving option to assist with life’s unexpected moments.

5 Reasons You Should Offer Employees an HSA

1. Save Money on Taxes: Enrolling is a win-win because there are tax savings for both the employee and employer. Employees enjoy tax-free contributions, earnings and distributions while employers pay less in taxes on their administered plans.
2. Opportunity to Invest: Depending on the employer and specific HSA, some plans offer additional investment options to help save for retirement. The ability to use an HSA as a long-term investment or retirement account as well as an everyday health savings account is an incredible benefit that can be used to leverage quality talent.
   
   
   Learn how to use your HSA for retirement saving >>
3. Flexibility and Control: With an HSA, employees decide when and how to use their savings. HSA funds can pay for COBRA premiums, copays, prescriptions and a range of products at the HSA Store. Plus, HSAs can travel with employees from job to job, without losing value. Employees can even use HSAs together with other savings accounts to make sure there are no gaps in coverage, adding an extra layer of security for unexpected expenses.
4. Lower Health Benefit Costs with Unique Coverage Options: High deductible health plans (HDHPs) with an HSA offer lower monthly premiums than most traditional plans which saves money for both employers and employees. Plus, plans with an HSA often offer unique features like mental health coverage and COVID care.
5. Corporate Culture and Company Morale: Offering more quality benefits like HSAs is an easy way to show you care for your employees, especially when there is little cost to offer them. By championing flexible and customized benefits, you build trust with your employees ensuring they have everything they need to make their lives easier. This is a popular incentive among millennials and people who are experts in their fields because when they can choose to work for anyone, anywhere, they want to ensure the company they choose also cares about their day-to-day and long-term wellbeing.

Create a Seamless HR and Benefits Experience

Speaking of culture and morale - improving the employee experience by offering benefits that address their evolving needs goes a long way to improve retention and avoid turnover. In fact, Forrester finds that 28% of employees would be less likely to look for another job if employers were to create a better experience by streamlining benefits, onboarding, ongoing employee support, HR and payroll. By offering a better employee experience through the use of a seamless benefits platform that combines HR and benefits administration, employees will feel valued and satisfied that their employer is adapting to their specific needs in this changing environment.

With an API integration between Deltek Talent Management and Clarity Benefit Solutions, you can streamline the benefits administration process by pulling employee information from Core HR into Clarity, which saves you valuable time and avoids potential errors inherent with manual data reentry. Clarity Benefit Solutions and Deltek Talent Management work together to provide that seamless experience that not only saves time and gives them benefits customized to their needs, but better communication to reach them where they may be, and a much easier way to enroll in and manage their benefits from anywhere.

Find Confidence with Clarity

At Clarity, we strive to offer a Simply Smarter approach to benefits. We handle the administration and paperwork so you can focus on what matters most.

Our Health Savings Accounts offer all the features and benefits described above plus:

• Built in payroll advance for unexpected expenses
• Three HSA investment options all housed in one single platform
• An easy way to adopt HDHPs for your organization
• Relieves financial stress from employees, helping them stay focused and cared for knowing their employer goes above and beyond

Gain more insight on how your clients can use HSAs even more advantageously going forward, especially for healthcare costs during retirement by attending our continuing education webinar.