Health Savings Account (HSA) overview

A Health Savings Account (HSA) holds tax-exempt money that an employee can use for out-of-pocket medical expenses. Employee are eligible to set up an HSA if they satisfy all federal requirements, such as participating in a High Deductible Health Plan (HDHP).

• You and your employee can both contribute to the employee's HSA.
• The maximum total annual contribution from you and your employee is their HSA plan deductible or the current IRS limit (whichever is lower).
• If both you and your employee contribute to the employee's HSA, Box 12 on the employee's Form W-2 will show the total of the two amounts.
• Contributions from you and your employee might be subject to taxes in some state and local jurisdictions.

See also

• Set up company contributions to a Health Savings Account (HSA)
• Set up health insurance deductions and contributions
• Stop a deduction or contribution
• Payroll topics

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