HSA, W-2s and the State of PA

kspier

An issue has come up about whether or not we should be reflecting on our w-2s as taxable wages for the state of Pennsylvania wages minus employees' contribution to an HSA. I am finding conflicting information, with some resources saying we should be subtracting that contribution from the w-2 for state income tax and other resources saying that we should not be, but that the employee takes the "deduction" by entering the amount on their PA tax return. Can anyone help clarify what we should be doing for the state of PA in this area? Thank you.

Sharon McKnight SPHR

kspier,

Looks like you've stumped our Forum members with your question. Look for this:

pit bulletin 2006-06 pdf
PERSONAL INCOME TAX BULLETIN - Health Savings Accounts
(Properties)

on this page: http://www.portal.state.pa.us/portal/server.pt?open=space&name=Dir&psname=SearchResult&psid=14&cached=true&in_hi_userid=2&control=OpenSubFolder&subfolderID=61521&DirMode=1

(It's about 10th down on the list.)

Hope this helps.

Sharon

PS: Your first post! Welcome to the Forum. :welcome: