Whether you're thinking about adding a WSA to your benefit plan or have just added one, here are some of the common FAQs to help you with a Wellness Spending Account.
1. Who is eligible for the Olympia WSA?
Only employees listed under the Olympia Benefits Group HSA are eligible for the WSA. The WSA does not cover dependents or spouses.
2. Can you backdate the effective date for the WSA?
No, the WSA is effective the day the group signs up for it.
3. Does the WSA allowance add to an employee’s taxable income?
Yes, it is important to note WSA allowances are taxable for the employee, meaning WSA funds used up by an employee contribute to their yearly taxable income (T4). Unused dollars in a WSA plan do not add to an employee’s taxable income.
4. What does “plan year” mean?
Because a WSA adds to your taxable income, the plan operates on the calendar year (January - December). This means that allowances are pro-rated. For example, adding a new employee into the plan in June 2019 would half their total allowance in the plan year of 2019. In January 2020, they would receive a new full allowance to be spent anytime between January 2020 and December 2020.
5. Can the employer choose what expenses are covered?
Olympia has generated five categories of expenses that employers can choose from. These categories include: Nutrition, Fitness, Professional/Personal Development, Personal/Family Interest and Mental Health. Employers can select the categories that they wish to have on their WSA plan.
6. How do claims get submitted?
All WSA claims are submitted and processed through the Olympia Benefits App. Employees will pay for the expense, then they will submit the claim through the App and will see reimbursement within 2-3 business days.
7. Can unused WSA limits be carried over into the next calendar year or transferred to the HSA account?
No, limits for the WSA plans reset every calendar year which means any unused benefits will be lost. Those amounts cannot be transferred to the HSA account.
8. As the employer, can I select which employees have access to the WSA account?
Once the WSA has been added to the plan, all employees are eligible to use the plan. You can’t pick and choose who will have the benefit as it is meant to provide your entire team a new, healthy lifestyle.
9. As the employer, am I able to see what my employees are submitting as expenses?
We take privacy very seriously here at Olympia Benefits and are very careful about what employers can see in terms of specific claim details. We have created various reports so that you can view how much is being spent so you can track it for accounting purposes but you will not have access to the specific claim details.