Health Savings Accounts - Businesses | Telephone BankingHealth Savings Accounts
Health Savings Account (HSA) and High Deductible Health Plans could combine to provide a lower-cost insurance option for your employees. If and when you’re ready to introduce them to your team, let us help.
An HSA is a tax-exempt account established exclusively for paying qualified medical expenses. There are many reasons why offering HSAs may be a smart move for you as an employer:
- May provide a lower-cost healthcare insurance option for employees.
- Contributions to employees’ HSAs are not reported as employee income, which could benefit you from a tax standpoint.
- This is not a “use it or lose it” type of account. Your employees may accumulate unused balance and interest without limit and access the funds in subsequent years.
- Your employees can manage and monitor their HSAs with a local, hometown bank that they already know and trust.
A First Southern HSA:
- Earns interest regardless of balance
- Comes with a free Visa debit card with an unlimited number of transactions
- No annual fee or monthly maintenance fee
- Free online banking and bill pay
- Free telephone banking
How we can help:
- We’ll help make sure your employees have answers to their questions.
- We’ll provide account information and applications.
- We can also talk about how your employees can get a personal, interest-bearing, no monthly service charge checking account along with their HSA.
- If you are planning to make contributions to your employees’ HSA accounts, we’ll get consent to provide you with a list of the HSA numbers and we’ll talk with you about options for electronic banking to make those contributions.
- We’ll open all the employee HSAs and send them a Visa HSA debit card.
Common questions for businesses:
Why do HSAs have lower administrative costs for me as an employer? |
You don’t have to set up claims administration. It is the individual’s responsibility to report expenditures to the IRS (on their annual federal income tax statement) that are not for qualified medical purposes.
What is the tax treatment for employee contributions? |
Contributions to their HSA can be made on an after-tax basis and taken as an above-the-line deduction on their tax return, or employees can make pre-tax contributions through a Section 125 plan (commonly known as cafeteria plan).
What if I make contributions as the employer? |
Employer contributions are excluded from any employee’s income. Employers must make comparable contributions to all employees’ HSAs unless made through a Section 125 plan.
Does my business structure affect contributions? |
Yes. In general, self-employed, partners and S-Corporation shareholders are not considered employees and cannot receive pre-tax employer contributions. Self-employed can only take an above-the-line deduction for their premium and HSA contributions. S-Corporation and LLCs cannot make pre-tax contributions to owners, shareholder or partners.
Can you help with group enrollment? |
We’ll help make sure your employees have answers to their questions. We’ll provide account information and applications. We can also talk about how your employees can get a personal, interest-bearing, no monthly service charge checking account along with their HSA. If you are planning to make contributions to your employees’ HSA accounts, we’ll get consent to provide you with a list of the HSA numbers and talk with you about options for electronic banking to make those contributions. Finally, we’ll open all the employee HSAs and send them a Visa HSA debit card.