Health Savings Accounts (HSAs) for Employers
My Utah is an epic balancing act, and an account
that helps my employees balance their well-being.
In today's competitive talent market, offering a comprehensive benefits package
to your employees is key.
By seamlessly integrating with high-deductible health plans (HDHPs) offered by
your company's insurance provider, Bank of Utah's Health Savings Account (HSA)
for Employers empowers your team to manage their health care expenses effectively.
This also positions your company as a leader in employee well-being.
HSAs can be opened in a branch.
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Benefits for Employers
Reduce Costs
With lower monthly premiums thanks to high-deductible health plans (HDHPs), HSAs can lead to significant savings for your company on health insurance costs.
Save on Taxes
With employer contributions to HSAs being tax-deductible and employee contributions reducing your payroll tax burden, you maximize tax savings.
Boost Morale
With HSAs as a benefit, you're positioned as a financially responsible employer who prioritizes employee well-being. This can help attract and retain top talent.
Benefits for Your Employees
Unlock Tax Advantages
With tax-deductible contributions, tax-free growth and tax-free reimbursements for medical expenses, HSAs incentivize employees to save for health care.
Empower Employee Flexibility
With the ability to save for future needs or use funds for current qualified expenses, HSAs offer employees increased flexibility in managing their health care finances.
Build Long-term Security
With unused funds that roll over year-to-year, HSAs create a long-term financial safety net for employees. This can help reduce health care-related financial stress.
Frequently Asked Questions
Q. Who can contribute to an HSA?
A. HSA Contributions can be made by:
- You, as the employer
- The employee
- Any other individual
Employees can contribute as often as they would like, up to the predetermined IRS limit. This limit is different for individual coverage and family coverage. Check with your insurance agent or the IRS for the current year contribution limits.
Q. How do employees pay for health expenses?
A. All Bank of Utah HSAs come with checks and a free Visa® debit card to pay for qualified medical expenses. The accounts also come with free Online Banking and Bill Pay, which can help you manage your HSA and schedule payments directly to health care providers.
Q. How does tax reporting work for employees?
A. As the employer, you will send each employee a 5498 SA form with a report of contributions and a 1099 SA form with a report of distributions from the HSA annually. They must file form 8889 as part of their annual tax return to report the amount of distribution used for qualified health care expenses.
Q. What if employees use the HSA for a non-qualified expense?
A. If funds from an employee's HSA is used for a non-qualified expense, they will be subject to a penalty tax on those funds. The penalty tax can be expensive, so encourage employees to contact an insurance provider if they are unsure whether or not a payment is qualified.
Q. How do HSAs and cafeteria plans compare?
| Options | Cafeteria Plan | HSA |
|---|---|---|
| Used for out-of-pocket health expenses | X | X |
| Employee contributions allowed | X | X |
| Employer contributions allowed | X | X |
| Employers receive deductions for payments | X | X |
| Pre-funded | X | X |
| Works with any high-deductible health plan | X | |
| Unused balance rolls over annually | X | |
| Investment options with tax-free growth | X | |
| Portable for consumer | X | |
| Funds can be used for any purpose after retirement | X |
For additional information and details on health savings accounts, high-deductible health plans and other insurance options, contact your health insurance provider or visit the IRS website.
Get Expert Assistance
Our friendly branch representatives can help you understand how how health savings accounts can benefit your business and your employees.
Disclosures
Bank of Utah offers health savings accounts (HSAs) as custodian only. Account beneficiaries establishing an HSA with Bank of Utah are solely responsible for ensuring they meet all eligibility requirements under the Internal Revenue Code.
Information presented on this page is for educational purposes only. Bank of Utah does not provide legal, tax or accounting advice. Consultation with appropriate legal and/or tax advisors is recommended before making any financial decisions. This material is intended for general information only and does not constitute specific advice.
