How Employees and Employers Save Money with HSAs

One great feature about Health Savings Accounts is that the more money put into the account, the better it is for both the employee and the employer. Obviously, a big draw to HSAs is the fact that employees can contribute to the account before taxes, reducing their taxable income. However, this helps the employer too, as any money contributed to the employee’s account is not counted as wages by the IRS. Typically, 15.3% of an employee’s gross pay is withheld for FICA taxes. Both the employee and employer are responsible for contributing 7.65% of this. Neither party has to pay FICA taxes on the money put in the HSA. https://bit.ly/31ra9un