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What is a Health Care Spending Account? Video
A Health Care Spending Account (HSA) is one type of Section 125 Plan you may want to consider implementing. Learn more in this small business video minute.
With HSA accounts, employers and employees can make tax-free contributions to a fund to pay for medical expenses. Employees must have a High Deductible Health Plan to be eligible, and they can take their money with them if they leave your company.
Welcome to the SurePayroll minute on HSAs.I’m Michael Alter.
Health Savings Accounts, also known as HSAs, are one type of Section 125 plan.
HSAs are tax-exempt accounts where funds grow to pay for medical expenses.Employees own their HSA accounts, and can take it with them if they change jobs.
In order to participate in an HSA, employees must have a High Deductible Health Plan.This means that an individual pays at least $1100 per year in out-of-pocket medical expenses, and a family pays at least $2200 a year.
HSA’s work like I-R-As for Health Care.Through payroll deductions, HSA contributions are made by the employee, employer or both.Contributions are tax-free and the interest earned is tax free, as long as the money is used for eligible medial expenses.
As an employer, an HSA program is an excellent addition to your employee benefits package.It will help you attract and retain employees, and you don’t have to pay employer taxes on contributed funds.
For the simple answer to small business issues, I’m Michael Alter.
Call a SurePayroll representative at 877.954.7873 to receive a free payroll quote that includes this time-saving feature.
More Health Savings Plan Videos
| > | What is a Section 125 Plan? |
| > | What is a HSA? |
| > | What is a FSA? |
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