What is the tax treatment if my employer contributes to my HSA?
You cannot deduct contributions that your employer makes to your HSA on your Federal Income Tax Return. Employer contributions to an employees HSA are treated as employer-provided coverage for medical expenses under an accident or health plan and may be excluded from an employees gross income. Employer contributions are not subject to withholding from wages for income tax or subject to the Federal Insurance Contributions Act (FICA), the Federal Unemployment Tax Act (FUTA), or the Railroad Retirement Tax Act (RRTA). In addition, contributions to an employees HSA through a cafeteria plan are treated as employer contributions and the employees income will be reduced.
