New Video: How To Set Up A Pre-tax Health Savings Account For Your Employees
BRADENTON, Fla., July 9, 2018 /PRNewswire-iReach/ -- Core Documents, the nation's leading provider of Section 125 Cafeteria and HRA plan documents, has produced a new video, "How to set up a pre-tax Health Savings Account for your employees." The video explains how simple it is for an employer to offer the Health Savings Account (HSA) to employees as part of a new or existing Section 125 Cafeteria plan.
Permanence and versatility
The HSA continues to increase in popularity because of its permanence and versatility. The employee owns the bank account where HSA contributions go on deposit even if he or she separates from the employer. There is no use-it-or-lose-it provision with an HSA; unused funds remain in the account, earning interest according to the type of bank account holding the deposits. The balance rolls over year after year, available to reimburse eligible out-of-pocket medical expenses (such as the health plan's deductible) until the employee reaches retirement age. Then, the employee may continue to use HSA funds for health care expenses (tax-free) or for just about any other purpose (at their retirement-age tax rate).
Added tax savings
The new video is part of Core Documents' commitment to helping our clients and their employees reduce income tax liability with compliant Plan Documents and Summary Plan Descriptions that allow them to deduct insurance premiums, out-of-pocket medical expenses, dependent care expenses, and commuter and parking expenses before payroll taxes are calculated. It explains the increased tax savings available to both the employee and employer when the HSA is available through an employer-sponsored Section 125 plan.
While an individual may set up his or her own HSA for income tax savings of up to about 30%, when the same HSA is opened within their employer's Section 125 HSA plan, both the employee and employer benefit. The employee gains an additional 8% Social Security and Medicare (FICA) tax savings that is only available when the HSA is funded with pre-tax salary deductions. The employer then also nets between 7 and 10% in tax savings by eliminating FICA and other payroll taxes on employee contributions.
That's an additional $527 in annual tax savings for an employee making the maximum contribution of $6,900 with family coverage in 2018. The employer's tax savings can be as much as $690.
The Trusted Source
Since 1997, Core Documents has been helping employers save money when making tax-advantaged and strategic choices for group health benefit plans. Known as The Trusted Source in affordable plan documents for Section 125 Premium-Only Plans and Health Reimbursement Arrangements, Core Documents offers the Core125, CoreFSA, CoreHSA, Core HRA, CoreAdmin, and more stand-alone products for a one-time fee.
The new video, "How to set up a pre-tax Health Savings Account for your employees," is available at this link on the Core Documents web site. Our staff will gladly answer any questions about the Section 125 plan document via email ([email protected]) or by phone (1-888-755-3373).
Media Contact: Gene C. Ennis, Core Documents, Inc., 888-755-3373, [email protected]
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SOURCE Core Documents, Inc.
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