Whether you’re looking to hire or are trying to “do more with less” after a recent downsizing, the company’s per employee cost is something every Vice President or Director of HR must manage. Offering a Health Savings Account (HSA) can help you do that.
If you’re planning to offer an High Deductible Health Plan (HDHP), regardless of whether it’s your only health insurance option or one among many, we think offering an HSA as well is essential. Here’s why.
Employee contributions to their HSAs are tax-deductible, but so are the contributions employers make. As an employer, you can structure your contributions as a set amount (i.e. each employee gets the same sum deposited into their account at the beginning of the year), or as a match.
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HSAs can lower companies' costs directly by encouraging employees to choose more affordable health insurance plans as well as indirectly by lowering the companies’ FICA obligation.
While the U.S. economy is cyclical by nature and heavily influenced by external factors like global conflicts and pandemics, it’s important to adopt habits that can help you build financial security. So you can weather the ups and downs that are bound to come while still meeting your financial goals.
If you’re thinking about New Year’s Resolutions you’d like to make for the next year, you might want to consider including one or two from our list. The positive effects from improving your financial health will extend well beyond the coming year and could even help you to achieve longer-term goals that may seem out of reach.
Disclaimer: the content presented in this article are for informational purposes only, and is not, and must not be considered tax, investment, legal, accounting or financial planning advice, nor a recommendation as to a specific course of action. Investors should consult all available information, including fund prospectuses, and consult with appropriate tax, investment, accounting, legal, and accounting professionals, as appropriate, before making any investment or utilizing any financial planning strategy.