payroll question on HSA

[grandmabee]

for payroll on the employee contributions to hsa is that subject to SS, medicare ?

[TAXBILLY]

Page 6:

http://www.irs.gov/pub/irs-pdf/p15b.pdf

taxbilly

[grandmabee]

Page 6:

http://www.irs.gov/pub/irs-pdf/p15b.pdf

taxbilly

I have been thru that pub over and over. it talks about who is eligible to particapate. I want to know for sure how to handle on payroll. I think employee contributions is not sub to federal or state wages but is subj to SS medicare and futa. These pubs used to have a chart also that show what everything was subject to.

[grmy2h]

pub 15, on page 13 says: Employee contributions to their HSA's or MSA's through a payroll deduction plan must be included in wages and are subject to social security, medicare and FUTA taxes and income tax withholding. However, HSA contributions made under a salary reduction arrangement in a section 125 cafeteria plan are not wages and are not subject to employment taxes or withholding.

So it looks like it depends on if they have a cafeteria plan in place.