Health Savings Accounts (HSA) Employer Benefit

This calculator helps estimate the value of creating a High Deductible Health Plan (HDHP) with Health Savings Accounts (HSA) for your employees. Providing such a plan not only gives your employees a valuable benefit, it can be a cost saving measure for your business. Use this calculator to estimate your net cost of setting up your HDHP and HSA plans.

An HDHP with an HSA could cost NET_DIFFERENCE_TOTAL per year.

This is based on implementing a High Deductible Health Plan (HDHP) and contributing to a Health Savings Account (HSA) for NUMBER_OF_EMPLOYEES employees. The average cost per employee was calculated as NET_DIFFERENCE_PER_EMPLOYEE per year. **GRAPH** **GRAPH**
Results Summary
 HDHP with HSAExisting Health Plan
Total cost of premiums TOTAL_COST_OF_PREMIUMS1 TOTAL_COST_OF_PREMIUMS2
Total cost of employer contributions TOTAL_COST_OF_EMPLOYER_CONTRIBUTIONS1 TOTAL_COST_OF_EMPLOYER_CONTRIBUTIONS2
Total FICA tax savings TOTAL_FICA_TAX_SAVINGS1 TOTAL_FICA_TAX_SAVINGS2
Total FUTA & State unemployment tax savings TOTAL_STATE_UNEMPLOYMENT_TAX_SAVINGS1 TOTAL_STATE_UNEMPLOYMENT_TAX_SAVINGS2
Total business expense tax savings TOTAL_BUSINESS_EXPENSE_TAX_SAVINGS1 TOTAL_BUSINESS_EXPENSE_TAX_SAVINGS2
Net total annual cost NET_TOTAL_COST_PRE_TAX1 NET_TOTAL_COST_PRE_TAX2
Net total annual cost per employee NET_TOTAL_COST_PER_EMPLOYEE_PRE_TAX1 NET_TOTAL_COST_PER_EMPLOYEE_PRE_TAX2
Input Summary
 HDHP with HSAExisting Health Plan
Number of employees NUMBER_OF_EMPLOYEES
NUMBER_OF_SINGLE_EMPLOYEES Single
NUMBER_OF_MARRIED_EMPLOYEES Family
NUMBER_OF_EMPLOYEES
NUMBER_OF_SINGLE_EMPLOYEES Single
NUMBER_OF_MARRIED_EMPLOYEES Family
HDHP Deductible Amount HDHP_DEDUCTIBLE_FOR_SINGLES1 Single
HDHP_DEDUCTIBLE_FOR_MARRIED1 Family
 
Monthly premium per employee HDHP_PREMIUM_FOR_SINGLES1 Single coverage
HDHP_PREMIUM_FOR_MARRIED1 Family coverage
HDHP_PREMIUM_FOR_SINGLES2 Single coverage
HDHP_PREMIUM_FOR_MARRIED2 Family coverage
Of the eligible amount, what percentage will you contribute into your employees HSA? AVERAGE_EMPLOYER_DOLLARS1 (AVERAGE_EMPLOYER_CONTRIBUTION1 of HDHP deductible amount)  
Of the eligible amount, what percentage will your employees contribute into their HSA? AVERAGE_EMPLOYEE_DOLLARS1 (AVERAGE_EMPLOYEE_CONTRIBUTION1 of HDHP deductible amount) 
FUTA & State unemployment tax rate STATE_UNEMPLOYMENT_TAX_RATE STATE_UNEMPLOYMENT_TAX_RATE
Income tax rate for business expenses INCOME_TAX_RATE_FOR_BUSINESS_EXPENSES INCOME_TAX_RATE_FOR_BUSINESS_EXPENSES

Health Savings Accounts (HSA) Employer Benefit Definitions

Number of single coverage employees
This is the number of single coverage employees you have that would participate in the High Deductible Health Plan (HDHP) and Health Savings Accounts (HSA).
Number of married coverage employees
This is the number of married employees you have that would participate in the High Deductible Health Plan (HDHP) and Health Savings Accounts (HSA).
HDHP deductible amount
Enter your deductible for your High Deductible Health Plan (HDHP) single person coverage and for married couple coverage. In 2014, for a HDHP, the minimum deductible amount is $1,250 for self-only coverage and $2,500 for family coverage.
HDHP premium amount
This is the monthly premium you pay, per employee, for your High Deductible Health Plan (HDHP). Enter for both single person coverage and for married couple coverage.
Normal premium amount
This is the monthly premium you pay, per employee, for your traditional health insurance. Enter for both single person coverage and for married couple coverage.
Average employer contribution
Enter the percent of the employee's deductible that the employer will be contributing to their Health Savings Account (HSA).
Average employee contribution
Enter the percent of the employee's deductible that the employee will be contributing to their Health Savings Account (HSA).
FUTA & State unemployment tax rate
Enter your state unemployment tax rate. State unemployment taxes (SUTA) are generally not collected on health insurance premiums or HSA contributions, provided those premiums or contributions are either paid directly by an employer to an eligible accident and health plan, or paid by an employee on a pre-income tax basis under a 'salary reduction' plan (also known as a 'Section 125 plan' or 'cafeteria plan'). However, since rules may vary by state you should verify the SUTA treatment of HSA contributions in the state(s) you operate in. State unemployment tax will apply to HSA contributions made by an employee through a cafeteria plan on an after-income tax basis. Note that if your employees will earn more than the state's unemployment tax wage base the SUTA tax benefit will not affect the calculation.

This calculator assumes that all employees earn enough that the FUTA tax benefit does not impact our calculation. This would assume that all employees earn more the $7,000 plus the cost of the HDHP premium plus the total contribution to the HSA made by the employee.

FICA and Medicare tax payments
FICA and Medicare are not collected on any health insurance premiums paid by the employer or contributions to an HSA as long as those contributions are paid on a pre-income tax basis from an employee's paycheck. To allow your employees to make pre-income tax contributions you will need a 'salary reduction' plan (also known as a 'Section 125 plan' or 'cafeteria plan'). This calculator assumes that all employees are under the maximum FICA tax payment limits. For 2012, FICA OASDI would not be collected on income over $110,100 earned by an individual employee. If their income exceeded $110,100 the FICA tax savings would be limited or zero. Since Medicare tax payments have no income limit, this assumption would not affect tax savings for Medicare.
Income tax rate for business expenses
Enter your marginal income tax rate for your business. You are able to deduct the cost of any health insurance premiums and employer contributions from your business income taxes. We use your marginal income tax rate to calculate the total income tax savings produced by these deductions to your taxable income.


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