Subject: HSA Employer Contributions (Sec. 125) – Need Wage Basis Configuration Guidance for Multi-St
@Mukesh Tyagi-Oracle We need guidance on configuring HSA Employer Contribution (HSA ER) taxability across multiple state and local jurisdictions where it is taxable under Section 125 rules, while remaining non-taxable everywhere else.
Business Requirement:
Health Savings Account – Employer Contributions (Sec. 125) are taxable in the jurisdictions listed below. In these jurisdictions, we need the HSA ER element to:
Appear on the employee's pay statement
Correctly hit Gross, Subject Withholdable, Reduced Subject Withholdable, and Taxable/Excess balances, where applicable to that jurisdiction's tax type
In all other jurisdictions not listed below, HSA ER should remain fully non-taxable and should not impact any of these balances.
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