What is 'health savings account' in SAP PY-US - USA?

health savings account - Overview

• Component: PY-US

• Component Name: USA

• Description: A health savings account is a tax-sheltered savings account earmarked for medical expenses. Deposits are 100% tax-deductible for the self-employed and can be easily withdrawn by check or debit card to pay routine medical bills with tax-free dollars. Larger medical expenses are covered by a low-cost, high deductible health insurance policy. What is not used from the account each year stays in the account and continues to grow interest on a tax-favored basis to supplement retirement.

health savings account - Details

• 
  Key Concepts: 
  A Health Savings Account (HSA) is a tax-advantaged savings account available to individuals enrolled in a high-deductible health plan (HDHP). The funds in the HSA can be used to pay for qualified medical expenses, such as doctor visits, prescription drugs, and other healthcare costs. In the United States, HSAs are administered by employers and are subject to Internal Revenue Service (IRS) regulations. 
  
  How to use it: 
  In SAP PY-US USA, employers can set up and manage Health Savings Accounts for their employees. Employers can configure the HSA contribution limits, set up employee contributions, and track employee contributions and withdrawals. Employees can view their HSA balance and make contributions or withdrawals from their account. 
  
  Tips & Tricks: 
  Employers should ensure that they are compliant with IRS regulations when setting up and managing HSAs. Employers should also be aware of any state or local laws that may apply to HSAs. 
  
  Related Information: 
  For more information on HSAs, please refer to the IRS website: https://www.irs.gov/publications/p969/ar02.html