Considering National Health Savings Account Day was December 8, we want to know: Are you taking advantage of the benefits available to employees and employers by offering an HSA?
First, let’s go over the basics. HSA stands for “health savings account.” In other words, it’s like a 401(k) account for your healthcare. HSAs, combined with high-deductible health plans, can be used to pay for current healthcare expenses and save for future qualified medical expenses.
Advantages include:
- Control over how and when to spend your money.
- Convenient access to your account with an HSA debit card.
- Flexibility
- Change jobs, move out of state, or become unemployed? Your HSA will move with you.
- If employees don’t use the money, it remains in the account and is available in future years.
- There is no deadline for employees to reimburse themselves for medical expenses. If HSA funds are used to pay for an expense that the IRS deems as an unqualified medical expense, the amount is reported as taxable income, and there may be an additional tax penalty.
- Tax benefits
- The employer does not pay federal income tax, Social Security, or Medicare taxes on pre-tax contributions to an HSA, as employer contributions are deductible as a business expense to the company.
- The employee will also see tax benefits: money goes into the HSA pre-tax, the balance grows tax-free, and using the funds for qualified medical expenses is tax-free.
- Savings
The Michigan Beverage Collective prides itself on exemplary customer service and our varied coverage plan options available to the craft beer and wine industry, including HDHPs that qualify for HSAs.
Contact us today to learn more!