Employer HSA Contributions Not on W2

[rpro1]

Hello,

I have an HSA where $400 were contributed fully through my employer and not deducted from my paycheck. These were the only contributions made to my HSA this year. From my understanding the $400 should be included on my W2 box 12 with code W even though they weren't through payroll deductions, correct?

Additionally if that is the case, should the $400 be included in box 1, 3, or 5. Are the $400 contributed by my employer that are not taken out of my paycheck included in my taxable income, and medicare and social security wages?

For example, should the boxes 1, 3, or 5 be $400 higher if the contributions were reported correctly?

Just trying to have as much information as I can regarding box 12 code W not being on my W2 and the impacts it has on the other boxes as well. 

Thank you!

[BillM223]

The way it is SUPPOSED to work is this.

• The employer makes contributions to your HSA if they choose to.
• You can make contribution by means of payroll deduction if you choose to and if the employer is willing.
• The sum of these amounts is called the "employer's" contribution, even though you may have contributed some or all of it. Don't blame us - it's the IRS's terminology.
• The employer should enter this amount (the sum of employer contribution and your contributions) in Box 12 with a code of W on your W-2.
• AT THE SAME TIME, the employer should have removed the code W amount from Wages from boxes 1, 3, and 5.

If you think about it, there is no way to tell from looking at the W-2 if the employer actually did this - you will have to ask HR or payroll.

NOTE: the $400 should be removed from Wages in boxes 1, 3, and 5 - this is why HSA contributions are a tax benefit  because they were never in your income at all. So if your annual income was $10,000 (box 1), if you have a code W amount of $400, the Box 1 (and 3 and 5) should show $9,600.

What does this mean: "From my understanding the $400 should be included on my W2 box 12 with code W even though they weren't through payroll deductions, correct?" Did you provide the $400 or did your employer? Or was this a one-time thing?

I am not sure I understood the import of your questions...did this help?

[rpro1]

Hello,

Sorry for any confusion, it was helpful but I still have some follow up questions.

My questions relate to if the total amount contributed are from my employer and none was contributed from my paycheck. The $400 was from 2 different $200 contributions made by my employer. No payroll deductions were made. 

From what you explained, my W2 box 12 code W should have $400.

My questions were about how the $400 should be reported since they weren't from payroll deductions. 

For example, if I my salary was $10,000. If my employer contributed $400 (none through payroll deductions) to my HSA. Would my box 1, 3, and 5 be $10,400, $10,000, $9,600? Or some combination of these? 

Let me know if this didn't help clarify my questions.

Thank you!

[BillM223]

Employer contributions and payroll deductions are reported in exactly the same way: Wages in box 1 (and 3 and 5) should be $9,600 in your example.