In fact, according to a recent survey conducted by the Employee Benefit Research Institute, benefits are a large and important factor when it comes to choosing a job for Americans. Furthermore, health care benefits were rated, by far, the most important benefit to those surveyed.
Health Savings Accounts (HSAs) are becoming a more and more popular option for employers to offer as a benefit and for employees to take advantage of. There are several reasons behind this, as there are a wide range of benefits to them.
Since benefits are clearly an important part of employee satisfaction as well as retention, this is something worth learning about and exploring as a business owner.
What is an HSA?
While it may seem like a complex insurance plan, HSAs are actually quite simple. They are a medical savings account that are available to taxpayers that are enrolled in a high-deductible health plan (HDHP).
These funds may be used towards medical expenses of any kind and are special in the way that they are taxed, which we will get into below.
The Top 3 Benefits of HSAs
HSAs have many tax advantages that other health care benefits do not share. For instance, contributions made by policyholders are tax-deductible and contributions made by an employer are tax-free.
Additionally, any interest accrued within an HSA is tax-free. Contributing to an HSA directly from your paycheck is also advantageous in a taxable check, as it brings down the amount of your taxable income.
The money is yours forever and is portable
Regardless of whether you change employers or do not work at all, any and all money in your HSA is yours to keep forever.
It can go with you to any future employer, and the money will never “expire” as it does in a Flexible Spending Account, which typically resets each calendar year.
The money acts differently once you are past a certain age
Once you reach a certain age, the money in an HSA will begin to act like a traditional retirement account. This allows the HSA owner to utilize the money however they please – not restricting it at all to the use of health care. This is a huge advantage that makes HSA’s very attractive to employees.
How a PEO Can Help
HSAs are rising in popularity, as in 2014, 9.3 million Americans were enrolled in them. In order to stay up-to-date on the most effective and attractive benefits, enlist in the help of a PEO.
Doing so will help your organization to attract top talent and retain your best employees. Our company works to match you with the best PEO for your business.
Call us today to receive a complimentary competitive analysis to learn which PEO has the right knowledge and experience to work with your company.