2 equal shareholders S-Corp (H-W). Pays 100% of shareholder health insurance which is included on the W-2, and pays 50% of employee health insurance. I believe this is ok because of different classes of employees.
Now wants to add an HSA. The two shareholders want to contribute to HSA at max – and add to W-2. They also want any employees who want to contribute to HSA to defer from payroll. Can we have company pay for 100% for shareholders (added to W-2) and only offer deferral to employees?
I believe need a cafeteria plan to set up HSA. They think maybe only one employee may take them up on this HSA option . Wouldn’t it be easier to just have the two shareholders contribute to the HSA’s outside of the corporation? I think they only thing they will be missing will be the savings on the FICA/Medicare since they aren’t maxed out yet. Any way to do this through the corp without the 125 plan set-up? I don’t think there is, but thought I would ask.
Or maybe, keep as is for 2018, and have them set up a plan for 2019. Is my thought process ok?