How Do I Report Income from Health Savings Accounts on a W2 Form?

Report income from employee benefits, such as a Health Savings Account, in box 12 of a Form W2. Use code W when you report your employer contributions and the employee’s contribution through a cafeteria plan. Report additional non-excludable employer contributions to an HSA with the employee’s income in boxes 1, 3, and 5. Use box 14 to apply railroad retirement taxes for an employee. Remember that your contribution to your employees’ HSAs are not necessarily subject to Social Security, Medicare, railroad retirement, and withholding taxes. Understand all that you must report and the correct place to report it.

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