Health Savings Accounts can lower your company’s health care costs and also give your employees more health care coverage options.

At Commercial Savings Bank, our health savings account plan is an interest-bearing checking account that can be used for medical expenses. Once an employer and/or an employee deposits money into the HSA, the account owner can write checks on the account or use an HSA debit card to pay for most health care expenses not covered by medical insurance.

Employee contributions can be made to HSAs on either an after-tax or pre-tax basis. If made on an after-tax basis, contributions should be counted as an above-the-line deduction on a tax return, making the contribution tax-free. Contributions made pre-tax can be done through a qualifying cafeteria plan (also called Section 125 plan) which may reduce a company’s overall FICA libaility.

Allowing funds to roll over year after year will allow employees to use health care services wisely and may help your business save money and to lower insurance premiums.

Contributions your company may choose to make are generally tax-deductible. (Consult with your company’s legal and tax advisors.)

To learn more about options available for your business, contact any local branch of CSB.

To learn more about Health Savings Accounts see the below resources.

HSA Logsheet