I have a client that has a HSA and I think his employer has muffed it, I admit I'm not real up to speed on HSA's but I have seen a few of them. It appears the employer credited the employee's HSA with pre-taxed dollars, perhaps this is alright if we don't take the HSA deduction above the line. There is also no box 12 Code W. I know this is a small company and I expect they think they are doing it right. Maybe they are and I 've just not seen this before. Any insight would be welcome.
-
-
Code W
Code W must be in box 12 , includes what the employee paid in pre-tax and what the employer paid in for them.
If that is not there I would request a corrected W-2. Many employers do not know how to do this or such in our case, the employer may not have told the company doing the W-2s that there was a pretax HSA.
If the contributions to the HSA was after tax dollars you can just enter them on the form and be ok.
You can enter what should be in box 12 on the form on the correct line, but the software will usually squawk at you that the info was not on W-2, to please verify the entry.
You will also need the distribution form to enter that amount correctly.AJ, EA -
True, code W should be entered in box 12 of the W-2.
But there is no need to have a cow over it if it is not reported on the W-2. When an employer contributes to an HSA for an employee, they are pre-tax dollars that are not included in box 1 of the W-2. Thus, there is no need to take a deduction on the 1040 as the money is already in the HSA pre-tax.Comment
-
Just a side note that if the employer contributes pre-tax earnings to an HSA for an employee, that will be reflected on the Form 5498-SA that the employee gets from the HSA trustee. The Form 5498-SA is additional proof for the employee besides Code W in box 12 of the W-2 that the employee received pre-tax HSA contributions from the employer.Comment
-
There is no need to have a cow over it, however it is nice when it is reported correctly.Originally posted by Bees Knees View Post
Often the employee does not understand how the HSA works and might not have a full year in with the employer providing the HSA so they aren't sure how much the employer contributed and/or they make contributions of their own besides what is taken out of their check. They KNOW distributions aren't taxable if used for medical so they don't bother to bring in the forms that say "Important tax documents".
It's not such a problem for the Federal, however in Wisconsin it needs to be figured and added back into income.Comment
-
More info
Looking at the last paystub for the year it appears the employers contribution plus the box 1 income add up to the gross pay for the year.
Gross = 59114
Simple = 1720 noted in box 12
Health Ins 90 pretax
Box 1 = 51504.
Maybe I 'll just pass on the HSA deduction above the line, seems to me that would work.Comment
Comment