Health Savings Account taxes in California
originally posted: 11/22/2006 reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If you notice an error or are in doubt, please send a new question by email or ask for an update. Email asktony@tonynovak.com.
Q: I would like to know how California’s state compensation insurance fund handles HSA contributions in terms of payroll. Is the amount of the employer’s contribution to the employee considered wages for purposes of calculating the premium?
A: HSA contribution made by the employer are not wages and therefore are not subject to worker's compensation taxes. For further clarification, see the definition of wages under the state law. Most likely it refers to the definition used in federal income taxes with stated modifications. Federal tax law, in turn, does not include HSA contributions in definition of wages. For more information, see www.healthsavingsaccount-hsa.com.
Summary
More resources:
http://www.www.healthsavingsaccount-hsa.com