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Home > Business Banking > Health Savings Account
  • Health Savings Account

    Adding a Health Savings Account (HSA) will make your employee benefit package more attractive to attract and retain employees. HSAs mix a high deductible health plan with a tax-favored health savings account that pays expenses toward the deductible. Look at these other benefits:

    • Reduced premiums
    • Lower fixed costs of the plan - premium and account contributions can be decided separately
    • More benefit dollars to employees - some of the savings to insurance companies can be delivered directly to your employee
    • Encourage employee savings for future healthcare expenses

    HSA Chart

    Why should I contribute to my employee's Health Savings Account?

    Share the cost of healthcare expenses with your employees.  Contributions you make to your employee HSA qualify as employer-provided medical expense coverage under an accident and health plan. You can make contributions in a lump sum or as frequently as you choose and there is no minimum! As the employer, you also benefit because the expenses:

    • Can be excluded from your company's gross income
    • Are not subject to withholding for income tax
    • Are not subject to other employment taxes
    • Help employees build a savings account with tax benefits

    What are my options as an employer for making contributions to my employers HSA?

    Health Savings Account legislation requires that you make comparable contributions to all eligible employees. These contributions are considered comparable if either the same dollar amount or percentage of the deductible is contributed. In situations where contributions are made through a Section 125 Plan, the comparability rule does not apply and matching contributions are allowed. For details, see IRS Notice 2004-50 Q&A 47icon-External-Link

    How can my employees set up their HSA?

    Account set up is easy! Employees can open their HSA online, by mail or in person at one of our facilities. But first we need to get your business set up for the HSA so give us a call and we will get started!

    What are the benefits to my employee for having an HSA?

    By providing a Health Savings Account to your company's benefit package, you provide your employees an opportunity to:

    • Lower their health premiums
    • Use available tax benefits
    • Control their health care costs
    • Build a savings account with tax benefits to pay for future medical expenses since funds automatically roll over from year to year
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