Employer W-2 Preparation for HSAs

Employers are required to report all employer Health Savings Account (HSA) contributions and employee pre-taxed HSA contributions on the W-2, Box 12, which should be marked with the letter “W”. This number should reflect any tax-free contributions to your employee’s HSA.  If an employee has made or received any after-tax contributions, after-tax contributions should not be noted on the employee’s W-2. Employees who made after-tax contributions will receive an “above-the-line” deduction when filing their 1040.

Consult your tax advisor and/or payroll provider for assistance on completion of the W-2.