What is a classification?
A classification is the area of your Health Spending Account that houses the benefit limit. Each employee who is enrolled in the plan will be placed in a classification and given the corresponding benefit limit.
Does each employee have their own individual classification?
As the Benefit Coordinator, you can decide how to set up the classifications. The important note is that all employees in a classification will receive the same benefit limit. Examples of classifications are:
Based on employment status (Executive, Management, Full-Time)
Type of position in the company (Manager, Supervisor, Employee, Welder, Associate)
Years employed (1-3 years, 4-6 years etc.)
Individual employees (each employee has their own classification)
Where can I see what classifications I currently have set up?
Log into your MyOlympia account, click on Manage then click on Manage Classifications. Here you will see your full list of classifications along with their corresponding benefit limit.
Are there any restrictions regarding the amount I set as a limit for each classification?
The minimum limit for each classification is $250 however, we highly recommend that all classifications stick to a 10:1 ratio with each other. This means that if you have a classification set at $250, we recommend that the highest limit in a classification be no more than 10 times $250 which is $2500. If you have a classification that exceeds the 10:1 ratio, that could be a red flag and cause an audit down the road through CRA.