Core Documents, the nation’s leading provider of Section 125 Cafeteria and HRA plan documents, has produced a new video, “How to set up a pre-tax Health Savings Account for your employees.” The video explains how simple it is for an employer to offer the Health Saving Account (HSA) to employees as part of a new or existing Section 125 Cafeteria plan.

HSA features

The HSA is rising in popularity because of its permanence and versatility. The employee owns the bank account where HSA contributions go on deposit even if he or she separates from the employer. There is no use-it-or-lose it provision with an HSA; unused funds remain in the account, earning interest according to the type of bank account holding the deposits. The balance rolls over year after year, available to reimburse eligible out-of-pocket medical expenses (such as the health plan’s deductible) until the employee reaches retirement age. Then, the employee may continue to use HSA funds for health care expenses (tax-free), or for just about any other purpose (at their retirement-age tax rate).

Video: Know the difference

The new video is part of Core Documents’ commitment to helping our clients and their employees reduce income tax liability with compliant Plan Documents and Summary Plan Descriptions that allow them to deduct insurance premiums, out-of-pocket medical expenses, dependent care expenses, and commuter and parking expenses before payroll taxes are calculated. It explains the increased tax savings available to both the employee and employer when the HSA is available through an employer-sponsored Section 125 plan.

While an individual may set up his or her own HSA for income tax savings of up to about 30%, when the same HSA is opened within their employer’s Section 125 HSA plan, both the employee and employer benefit. The employee gains an additional 8% Social Security and Medicare (FICA) tax savings that is only available when the HSA is funded with pre-tax salary deductions. The employer nets between 7 and 10% in tax savings by eliminating FICA and other payroll taxes on employee contributions.

That’s an additional $527 in annual tax savings for an employee making the maximum contribution of $6,900 with family coverage in 2018. The employer’s tax savings can be as much as $690.

Get started today

Not only do HSAs benefit small business employers, it is a benefits option your employees will love, and setting up an HSA option for employees is easy. The first step is ordering your HSA/Section 125 Plan Document package from Core Documents, Inc.

To order the $129 CORE HSA Plan Document Package* from Core Documents, Inc.,

click here for our secure online order form.

As always, the knowledgeable and friendly team at Core Documents is available to assist you throughout the process:

We also have a fill-in FAX/email order form (.pdf). Click here to open/download.

 Learn more about how HSAs benefit small business employers:

• Section 125 Plan with HSA Module for Additional Employer Tax Savings

• Health Savings Account in Section 125 Plans with High Deductible Health Plans

• HSA Administration: Debit card coordinates expense

• Do I need a Section 125 Premium Only Plan Document?

*Refund Policy: Purchaser understands that goods and services provided by Core Documents, Inc. are non-refundable. Orders cancelled prior to shipping are subject to cancellation fees applied to the cost of goods and services provided during the review, draft, and preparation of your order.