National HSA Awareness Day is October 15, 2021. It is a day to learn about the value HSAs can bring to employees and the reasons to provide an HSA in a business. HSAs make employees feel like they can control and manage their money the way they want to. Whether it be using an HSA for a pre-qualified medical expense or saving for retirement, they decide how and when to spend it. Offering an HSA gives employers a great opportunity to advise their employees on the best decisions for their wellness and financial well-being.
The BASE® Health Savings Account (HSA) is designed to help individuals save and pay for qualified medical expenses, while allowing the opportunity to save for the future, and/or invest the funds. This triple tax-advantaged benefit allows employees in a qualifying High Deductible Health Plan (HDHP) to save money on a pre-tax basis to pay for qualifying medical expenses now or in the future.
BASE® is here on this national day, and every day, to drive awareness of the benefits of Health Savings Accounts (HSAs) to help employers and employees to maximize their tax savings.
Benefits to the EMPLOYER:
- Tax savings. Employee contributions reduce payroll taxes and contributions to employees’ HSAs are tax-deductible.
- Increased employee satisfaction. An employer can empower their employees with their ability to make better health care decisions, pay for their health care expenses, invest, and/or save for the future.
- Lower premiums. Employers pay, and save on, lower premiums since the High Deductible Health Plan coverage is more affordable. This allows employers to use the savings on those premiums to help contribute to their employees’ HSAs.
Benefits to the EMPLOYEE:
- Lower taxable income. Because their paycheck is taxed AFTER contributions are made, employees will have less income to tax with an increase in take-home pay.
- Long-term savings with earning potential. Earnings on invested HSA contributions are tax-free. The funds are not taxed if used for qualified health care expenses, meaning the HSA is a compelling option to consider for long-term retirement planning.
- Own funds. There is no risk in losing their money if not used in a certain time frame or if they change employers.
So many believe that a business must be a certain size to offer their employees the HSA. As a low-cost alternative to help keep premiums under control, HSAs are in fact popular among individuals, small businesses, and larger employers. BASE® is ready to answer your questions and continue to build awareness today, and in the future, so call 888.386.9680 to learn more!