Get Hsa Payroll Deduction Form School District

An employee's HSA may be funded by contributions from the employer, from the employee or both. Employers may choose to contribute a set amount or make "matching" contributions. The IRS sets annual limits on the amounts that may be contributed to the HSA.

California and New Jersey are the only two states in the U.S. to tax these plans. When Congress established HSAs as part of the 2003 Medicare Modernization Act, the majority of states automatically conformed to the federal tax code, which defines HSAs as tax-exempt accounts.

Contributions to an HSA are excludable from income and employment taxes if made by the employer. Earnings on amounts in HSAs are not taxable.

Employer contributions to your Health Savings Account are reported on Form W-2 Wage and Tax Statement, Box 12 with a code "W." An amount entered here will flow to Line 7, Column C of California Schedule CA.

This opens in a new window. One-time deposits can be made from your personal bank account into your HSA account.

Employer contributions made to your HSA are required to be treated as taxable income in California and therefore will be reported as imputed income for state tax purposes. Employee contributions made to your HSA are currently required to be treated as after-tax contributions for California state tax purposes.

You will receive a Form W-2 from your employer or your employer's payroll vendor. This form should identify any pre-tax contributions (made by you and/or your employer) to your HSA during 2022. The information will be shown in Box 12 (under a, b, c or d) and designated with code W.