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HSA for s-corp shareholder - any advantage to having company pay it?

Intuit Payroll software does not handle company HSA contributions to 2% or more shareholders. I want to make the maximum contribution to my HSA this year so I'm wondering if there's actually any tax advantage to making things confusing by having the company pay for my HSA contribution, or is it all a wash and I should just pay it myself to not deal with Intuit reporting it wrong on my W2?

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Anonymous
Not applicable

HSA for s-corp shareholder - any advantage to having company pay it?

For employment tax purposes, the S Corp treats the HSA contributions as wages subject to income tax withholding (but exempt from FICA and Medicare taxes). While you pick up the HSA contributions as income on your W-2, you can deduct the HSA payments made by the S Corp on your Form 1040 and, effectively, you have a wash for tax purposes.

 

 

pay it yourself.  

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