@marcia1230 @BillM223 HR finally got back to me and this is what they explained to me. The amount in DD represents the TOTAL premium that is paid for health insurance. The TOTAL premium amount consists of both the Agency's portion and the employee's portion. The premium amount of the employee's portion is not taxed. To determine how much federal tax to withhold, the agency applies the federal tax rate to the employee's pay less the employee's portion of the premium.
And then the employee's portion of the total premium is pulled out of the employee's pay and paid to the insurance company. The insurance company then puts a portion of the employee's premium received into an HSA. Based on this, the portion of the employee's premium placed into an HSA is NOT deductible (as it was not taxed in the first place). Does this make sense?
