It doesn’t matter if your company is a small or large, everyone needs medical care. So finding a way to save up for emergencies is key! Especially those that have a High Deductible Health Plan (HDHP) and a Health Savings Account (HSA). A Health Savings Account can help you and your team feel financially stable, and with growing premiums, everyone can save you money for an emergency
If you want to allow employees to contribute pretax dollars to an HSA, you need to set them up to a High Deductible Health Plan (HDHP) first, if they aren’t enrolled in one already. Only enrollees in eligible HDHPs are allowed to contribute to an HSA.
Here are some reasons why you should consider providing an HSA to your employees even if you own a small business:
Every dollar an employee contribute will reduce their taxable income. That’s a really great employee benefit. An added benefit for you, the employer, is that you do not owe your part of payroll tax on money an employee contributes to an HSA account. If you choose to contribute to an employees HSA account, your employer contribution is exempt from federal income and payroll tax.
Employees can pay out of pocket medical costs with tax-free dollars. A reality of our current health care system is that insurance plans typically only pay a portion of covered expenses. Money an employee has saved up in an HSA can be withdrawn tax-free to pay for qualified medical expenses.
HSAs are a permanent fund for medical expenses. Unlike a flexible savings account (FSA), there is no use-it-or-lose-it policy with an HSA. Money an employee contributes to their HSA can be used to pay medical bills or it can be left in the account for next year’s medical expenses, or to cover health care bills years from now. Also, it reduces the cost of uncovered vision and dental care. Many standard health insurance plans do not provide vision or dental care. Employees with an HSA can use tax-free dollars to pay for these health care services as well.
Create an account with HSAPAY by TalliHealth, to help manage your HSA and it’ll also help your employees manage their HSA as well.
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