Yes. The HSA comparable contributions rules for contributions done outside a section 125 cafeteria plan allow the employer to vary their HSA contribution based on the employee’s coverage level between single (employee only) and “other than single" coverage (2-party, family, etc.).

The employer has more flexibility in contribution funding options if the employer HSA contributions are done through a section 125 cafeteria plan. Under IRS guidelines, The Tax Relief and Health Care Act of 2006 allows employers to make larger HSA contributions for a non-highly-compensated employee than for a highly-compensated employee. A highly- compensated employee for 2017 is an employee who meets either of the following tests:

You can choose to ignore test 2 if the employee was not also in the top 20% of employees when ranked by pay for the preceding year.

Partnerships and S corporations: Partners and 2% shareholders of an S corporation are not eligible for salary reduction (pre-tax) contributions to an HSA. Employer contributions to the HSA of a bona fide partner or 2% shareholder are treated as distributions or guaranteed payments as determined by the facts and circumstances.

Cafeteria plans:  You may contribute to an employee’s HSA using a cafeteria plan and your contributions are not subject to the statutory comparability rules. However, cafeteria plan nondiscrimination rules still apply. For example, contributions under a cafeteria plan to employee HSAs cannot be greater for higher-paid employees than they are for lower-paid employees. Contributions that favor lower-paid employees are prohibited.

CDHPCoach’s Storage Facility, where the Coach has organized and compiled a vast amount of tools and resources for you to access.

Housed here are key components and information within the book, Bend the Healthcare Trend which was the impetus behind the CDHPCoach.