Contribution Options
Employers may choose to contribute to employees' HSAs and in order to comply with the comparability ruling have the following options:
- A set dollar amount or a set percentage of the deductible.
- An Employer may differentiate contributions by class of employee: full-time, part-time and collectively bargained
- An Employer may use four (4) tiers in making contributions based on either the same dollar amount or percent of deductible, maximum allowed, etc. for:
- Employee only
- Employee plus spouse
- Employee plus child(ren)
- Employee plus family
Under a Section 125 Plan (Flex plan) contributions are not subject to this comparability ruling. However, the discrimination testing of the Section 125 plan prevails.
Please see the link below to the IRS guidance for more details:
IRS Guidance on Employer Contribution