More and more businesses of all sizes are using Health Savings Accounts (HSA’s) as a way to pay less in payroll taxes while also offering their employees an attractive benefit.
A Health Savings Account is a type of personal savings account an employer can offer to employees covered by qualified High-Deductible Health Plans (HDHPs) to help them save money on many out-of-pocket medical expenses like doctor visits, vision and dental care, and prescriptions.
HSA Benefits for the Employer:
- Tax savings – There are no payroll taxes on employee HSA contributions made through payroll deductions. There is a Federal income tax deduction for contributions that the employer makes to employees’ HSA accounts.
- Health-plan independent – An HSA account is compatible with any qualified High-Deductible Health Plan, so the employer doesn’t have to change their HSA provider if their health plan changes.
- Attractive Benefit – An employer-sponsored HSA is part of a competitive benefits package that can help attract and retain valued employees.
HSA Benefits for the Employee
- Tax Free Contributions – An HSA offers unique tax advantages that help employees keep more of their hard-earned money. Contributions to an HSA can be made with pretax dollars which means every dollar employees contribute to their HSA is a dollar saved.
- Tax Free Gains – Any gains on the money in an HSA account is tax-free so employees keep 100% of any money their HSA savings or investments earn, boosting the amount of money they have to cover their out-of-pocket medical costs.
- Tax-free withdrawals – Employees won’t pay taxes on money they withdraw for qualified medical expenses
- Control – Employees decide how much money to save in their account (up to the IRS contribution limit) and which qualified medical expenses to pay with their HSA.
- No “Use it or lose it” Rules – Any unused balance carries over from one year to the next
- SASI offers cost effective, turnkey administration of HSA plans as well as Section 125 Cafeteria Plans, which can also allow payroll deductions for other expenses such as parking and mass transit. SASI’s processes are designed for minimal employer involvement. SASI emphasizes paperless administration as much as possible, including online enrollment.
Call SASI Today at (800) 752-3539 or visit our website at www.sasiplans.com to get started!