Pretax Benefits Through A Health Savings Account (HSA)
With the new regulations and additional coverage mandates embedded in the Affordable Care Act “ACA” many experts believe we’ll see an explosion of coverage and market entrants into high deductible health plans (HDHP) coupled with Health Savings Accounts (HSA).
These plans have been popular for years and the fastest growing trend in employee benefits for large employers but industry insiders predict this trend will trickle down to the small group and individual market at a rapid pace in 2014.
The Bureau of Labor Statistics state that employers who are competing for employees are taking advantage of IRS Section 125 tax-advantaged treatment by offering both the Section 125 POP and also the Health Savings Account for their employees.
Although unemployment is still higher than normal the market for GREAT talent is always difficult. Employees want options, they want security, and EVERYONE wants to pay less taxes.
If you offer your employees an H.S.A. make sure your encouraging deductions through your Section 125 plan to allow all involved to avoid FICA, Federal and State Income tax. Employers benefit in avoiding matching tax payments and its a fantastic benefit for employees to start to save for their medical needs.