APA's Top Payroll Questions & Answers for 2020 - 34

4

APA's Top Payroll Questions & Answers for 2020

Health, Accident, and Retirement Benefits

Employer contributions to employee's HSA account

Q.

We are a payroll service and one of our clients is a company that does
not offer health insurance or a health savings account (HSA) for its
employees. The company wants to begin making contributions to the
personal HSAs for employees who have them. Would the money that
they deposit into the HSA account be taxable to the employee?

A.

HSAs are tax-exempt trusts or custodial accounts created exclusively
to pay for the qualified medical expenses of the account holder and
his or her spouse and dependents. An HSA is set up with a qualified
HSA trustee, which can be a bank, an insurance company, or anyone
already approved by the IRS to be a trustee of IRAs or Archer MSAs.
HSAs are subject to rules similar to those applicable to IRAs.
HSAs may be established by individuals who are covered by a high
deductible health plan (HDHP), which is defined as a plan with an
annual deductible of at least $1,400 for 2020 ($1,400 for 2021), in the
case of self-only coverage or $2,800 for 2020 ($2,800 for 2021), in the
case of family coverage, and that has an out-of-pocket expense limit
of no more than $6,900 for 2020 ($7,000 for 2021), in the case of selfonly coverage and $13,800 for 2020 ($14,000 for 2021), in the case of
family coverage. These amounts are adjusted for inflation annually to
the nearest multiple of $50.
Contributions to an HSA made by or on behalf of an eligible
individual up to the maximum annual contribution limit are deductible
by the individual. In addition, employer contributions (including salary
reduction contributions made through a cafeteria plan) are excludable
from gross income and wages for income tax withholding and social
security, Medicare, and FUTA tax purposes if the employer reasonably
believes at the time the contribution is made that it will be excludable
from the employee's income. Both the employer and the employee can
contribute to the employee's HSA. All contributions are aggregated for
purposes of the maximum annual contribution limit.
Find out more information about HSAs in The Payroll Source®,
§4.1-7.

34



https://bookshelf.americanpayroll.org/payroll_source/ https://bookshelf.americanpayroll.org/payroll_source/

APA's Top Payroll Questions & Answers for 2020

Table of Contents for the Digital Edition of APA's Top Payroll Questions & Answers for 2020

Table of Contents
APA's Top Payroll Questions & Answers for 2020 - Intro
APA's Top Payroll Questions & Answers for 2020 - Cover1
APA's Top Payroll Questions & Answers for 2020 - a
APA's Top Payroll Questions & Answers for 2020 - b
APA's Top Payroll Questions & Answers for 2020 - c
APA's Top Payroll Questions & Answers for 2020 - Table of Contents
APA's Top Payroll Questions & Answers for 2020 - e
APA's Top Payroll Questions & Answers for 2020 - 1
APA's Top Payroll Questions & Answers for 2020 - 2
APA's Top Payroll Questions & Answers for 2020 - 3
APA's Top Payroll Questions & Answers for 2020 - 4
APA's Top Payroll Questions & Answers for 2020 - 5
APA's Top Payroll Questions & Answers for 2020 - 6
APA's Top Payroll Questions & Answers for 2020 - 7
APA's Top Payroll Questions & Answers for 2020 - 8
APA's Top Payroll Questions & Answers for 2020 - 9
APA's Top Payroll Questions & Answers for 2020 - 10
APA's Top Payroll Questions & Answers for 2020 - 11
APA's Top Payroll Questions & Answers for 2020 - 12
APA's Top Payroll Questions & Answers for 2020 - 13
APA's Top Payroll Questions & Answers for 2020 - 14
APA's Top Payroll Questions & Answers for 2020 - 15
APA's Top Payroll Questions & Answers for 2020 - 16
APA's Top Payroll Questions & Answers for 2020 - 17
APA's Top Payroll Questions & Answers for 2020 - 18
APA's Top Payroll Questions & Answers for 2020 - 19
APA's Top Payroll Questions & Answers for 2020 - 20
APA's Top Payroll Questions & Answers for 2020 - 21
APA's Top Payroll Questions & Answers for 2020 - 22
APA's Top Payroll Questions & Answers for 2020 - 23
APA's Top Payroll Questions & Answers for 2020 - 24
APA's Top Payroll Questions & Answers for 2020 - 25
APA's Top Payroll Questions & Answers for 2020 - 26
APA's Top Payroll Questions & Answers for 2020 - 27
APA's Top Payroll Questions & Answers for 2020 - 28
APA's Top Payroll Questions & Answers for 2020 - 29
APA's Top Payroll Questions & Answers for 2020 - 30
APA's Top Payroll Questions & Answers for 2020 - 31
APA's Top Payroll Questions & Answers for 2020 - 32
APA's Top Payroll Questions & Answers for 2020 - 33
APA's Top Payroll Questions & Answers for 2020 - 34
APA's Top Payroll Questions & Answers for 2020 - 35
APA's Top Payroll Questions & Answers for 2020 - 36
APA's Top Payroll Questions & Answers for 2020 - 37
APA's Top Payroll Questions & Answers for 2020 - 38
APA's Top Payroll Questions & Answers for 2020 - 39
APA's Top Payroll Questions & Answers for 2020 - 40
APA's Top Payroll Questions & Answers for 2020 - 41
APA's Top Payroll Questions & Answers for 2020 - 42
APA's Top Payroll Questions & Answers for 2020 - 43
APA's Top Payroll Questions & Answers for 2020 - 44
APA's Top Payroll Questions & Answers for 2020 - 45
APA's Top Payroll Questions & Answers for 2020 - 46
APA's Top Payroll Questions & Answers for 2020 - 47
APA's Top Payroll Questions & Answers for 2020 - 48
APA's Top Payroll Questions & Answers for 2020 - 49
APA's Top Payroll Questions & Answers for 2020 - 50
APA's Top Payroll Questions & Answers for 2020 - 51
APA's Top Payroll Questions & Answers for 2020 - 52
APA's Top Payroll Questions & Answers for 2020 - 53
APA's Top Payroll Questions & Answers for 2020 - 54
APA's Top Payroll Questions & Answers for 2020 - 55
APA's Top Payroll Questions & Answers for 2020 - 56
APA's Top Payroll Questions & Answers for 2020 - 57
APA's Top Payroll Questions & Answers for 2020 - 58
APA's Top Payroll Questions & Answers for 2020 - 59
APA's Top Payroll Questions & Answers for 2020 - 60
APA's Top Payroll Questions & Answers for 2020 - 61
APA's Top Payroll Questions & Answers for 2020 - 62
APA's Top Payroll Questions & Answers for 2020 - 63
APA's Top Payroll Questions & Answers for 2020 - 64
APA's Top Payroll Questions & Answers for 2020 - 65
APA's Top Payroll Questions & Answers for 2020 - 66
APA's Top Payroll Questions & Answers for 2020 - 67
APA's Top Payroll Questions & Answers for 2020 - 68
APA's Top Payroll Questions & Answers for 2020 - 69
APA's Top Payroll Questions & Answers for 2020 - 70
APA's Top Payroll Questions & Answers for 2020 - 71
APA's Top Payroll Questions & Answers for 2020 - 72
APA's Top Payroll Questions & Answers for 2020 - 73
APA's Top Payroll Questions & Answers for 2020 - 74
APA's Top Payroll Questions & Answers for 2020 - 75
APA's Top Payroll Questions & Answers for 2020 - 76
APA's Top Payroll Questions & Answers for 2020 - 77
APA's Top Payroll Questions & Answers for 2020 - 78
APA's Top Payroll Questions & Answers for 2020 - 79
APA's Top Payroll Questions & Answers for 2020 - 80
APA's Top Payroll Questions & Answers for 2020 - 81
APA's Top Payroll Questions & Answers for 2020 - 82
APA's Top Payroll Questions & Answers for 2020 - 83
APA's Top Payroll Questions & Answers for 2020 - 84
APA's Top Payroll Questions & Answers for 2020 - 85
APA's Top Payroll Questions & Answers for 2020 - 86
APA's Top Payroll Questions & Answers for 2020 - 87
APA's Top Payroll Questions & Answers for 2020 - 88
APA's Top Payroll Questions & Answers for 2020 - 89
APA's Top Payroll Questions & Answers for 2020 - 90
APA's Top Payroll Questions & Answers for 2020 - 91
APA's Top Payroll Questions & Answers for 2020 - 92
APA's Top Payroll Questions & Answers for 2020 - 93
APA's Top Payroll Questions & Answers for 2020 - 94
APA's Top Payroll Questions & Answers for 2020 - 95
APA's Top Payroll Questions & Answers for 2020 - 96
APA's Top Payroll Questions & Answers for 2020 - 97
APA's Top Payroll Questions & Answers for 2020 - 98
APA's Top Payroll Questions & Answers for 2020 - 99
APA's Top Payroll Questions & Answers for 2020 - 100
APA's Top Payroll Questions & Answers for 2020 - 101
APA's Top Payroll Questions & Answers for 2020 - 102
APA's Top Payroll Questions & Answers for 2020 - 103
APA's Top Payroll Questions & Answers for 2020 - 104
APA's Top Payroll Questions & Answers for 2020 - 105
APA's Top Payroll Questions & Answers for 2020 - 106
APA's Top Payroll Questions & Answers for 2020 - 107
APA's Top Payroll Questions & Answers for 2020 - 108
APA's Top Payroll Questions & Answers for 2020 - 109
APA's Top Payroll Questions & Answers for 2020 - 110
APA's Top Payroll Questions & Answers for 2020 - 111
APA's Top Payroll Questions & Answers for 2020 - 112
APA's Top Payroll Questions & Answers for 2020 - 113
APA's Top Payroll Questions & Answers for 2020 - 114
APA's Top Payroll Questions & Answers for 2020 - 115
APA's Top Payroll Questions & Answers for 2020 - 116
APA's Top Payroll Questions & Answers for 2020 - 117
APA's Top Payroll Questions & Answers for 2020 - 118
APA's Top Payroll Questions & Answers for 2020 - 119
https://www.nxtbookmedia.com