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HSA W2 Report

If employee elects payroll deduct : $25 for High Deductible Health Plan (HDHP), employer contribution for $50 for HSA, and employee elect $25 payroll deduct for hsa individual. W2 box 12 code w is $100. Is it correct?


  • Yes.

    Code W on w2
    The amount with code "W" in box 12 of your W-2 is the sum of the amounts that your employer contributed to your HSA AND that you contributed through a payroll deduction scheme.

  • rrupertrrupert ✭✭✭

    could you clarify what the $25 HDHP deduction is vs the $25 for HSA individual? I agree both sides of the HSA should be in code W, but I am not finding where any part of your employee premium would be in Code W.

    Code DD should include both what the employee and employer paid in health care premiums.

  • Hi Rrupert, employee must be enrolled in a High Deductible Health Plan to open HSA account . Employee pay $25 for high deductible health plan in order to qualify for HSA account. Previous person setup amount box 12 with code W that include $25 for HDHP and HSA contribution from both employer and employee which cause amount over limit that employer and employee contribution for HSA so employee has to pay extra tax when they file their income tax. Is that mean $25 for HDHP is like health care premiums and it should go to code dd instead w?

    Thanks you for your help.

  • rrupertrrupert ✭✭✭
    edited April 17

    That is my understanding. Premiums would not be added into HSA contributions (although you are correct in the fact that the employee has to be enrolled in an HDHP to contribute to the HSA). Unless there was some strange (and probably incorrect) bookkeeping going on where HSA contributions were paying employee premiums.

    (and I work both HR and payroll sides although now I am back to 80% HR side)

  • (and I work both HR and payroll sides although now I am back to 80% HR side)

    Darth Vader was able to come back from the Dark Side. So can you.

  • rrupertrrupert ✭✭✭

    actually David, my Payroll processor at my new employer is an amazing lady and so far we work very well together. The last HR person was her nemesis and was very unhelpful. It definitely helps that I've done the payroll processing for so long so I know what information to feed her and what to check for. This company has a weird setup for what's 125 and what isn't (along with an employer credit for the pretax choices)...... it's been interesting to say the least!

  • If you do not have a pretty new Section 125 plan, get one. Pre-2009 there was almost nothing in the way of S125 rules, and the S125 plans were mostly canned and sold for $100. IRS is very hard ball on S125 (and 409s) these days.

  • rrupertrrupert ✭✭✭

    ours was just restated on 1/1/18 so we are good!

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