Some W-2s show lower 2021 HSA employer contribution amounts

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We have received inquiries from SEBB organizations regarding the $6.25 (individual) or $37.50 (family) health savings accounts (HSA) employer contributions reported for the February 2021 and March 2021 deposit months on the 2021 W-2 file, instead of the normal employer contributions of $31.25 or $62.50.

This is because in February 2020, about 3,000 SEBB subscribers enrolled in the UMP High Deductible plan received a $50 SmartHealth wellness incentive contribution to their HSA from the Health Care Authority (HCA) in error. To correct this, HCA recovered the overpayment to these employees’ HSAs by decreasing the employer contribution by $25 in February 2021 and $25 in March 2021.We mailed a letter on February 12, 2021 to these employees explaining the error, and how the HCA would correct it on their 2021 W-2s. (For more information, see the GovDelivery from February 19, 2021.)

Since the HCA reported the lower employer contribution amounts for these employees’ 2021 W-2s, so you do not need to take further action.

If your employees have questions about their HSA account activity, they can call HealthEquity (the HSA administrator) at 1-844-351-6853. If they have tax questions regarding their HSAs, please direct them to consult with their tax advisor.