If an employer contributes to an employee's HSA,the payment will:

Question

Quizplus · Accepted Answer

Employer contributions to an employee's HSA are not counted as income and are not subject to federal income tax withholding, FICA (Social Security and Medicare) tax, or federal unemployment (FUTA) tax. This means that the employee will not pay taxes on the employer's contribution, and it will not be reported as income on their W-2 form. However, the employee cannot deduct the employer's contribution on their personal tax return because it is not considered a personal contribution.

If an Employer Contributes to an Employee's HSA,the Payment Will