As the 2024 tax-filing season approaches, it’s important for employers to help their employees stay informed about key IRS requirements, especially those related to Health Savings Accounts (HSAs). Here are a few things to keep in mind to make tax season smoother and stress-free for your employees.
1099-SA Forms for HSA Account Holders
The IRS requires that all individuals with an active HSA and processed distributions in 2024 receive a 1099-SA form. If you are a client with Medcom, these forms will be available both online via the WealthCare Portal and mailed to account holders by the January 31, 2025, deadline. Employees should be encouraged to review their accounts for accuracy and download their forms promptly to avoid any delays in tax preparation.
IRS Extensions for Hurricane Victims
For those affected by Hurricanes Helene and Milton, the IRS has extended the tax filing deadline to May 1, 2025. This extension applies to federally declared disaster areas, including:
- Entire States: Alabama, Florida, Georgia, North Carolina, South Carolina
- Select Areas: Tennessee (various counties), Virginia (various counties and cities)
If you have employees in these areas, ensure they are aware of the extension and have resources to adjust their tax plans.
HSA Contributions After January 31
What happens if an employee misses the January 31 HSA contribution deadline? No worries—it’s still possible to contribute manually by:
- Sending a check to the address listed on their 1099-SA form.
- Using the normal external contribution process.
Once the contribution is posted to the account, participants must submit a reallocation request.
Tips for Employers
- Communicate Deadlines: Share timely reminders about HSA deadlines to keep employees on track.
- Support Disaster Victims: Provide targeted resources for employees residing in affected areas to help them navigate the extended tax-filing timeline
- Encourage Proactivity: Advise employees to access their 1099-SA forms online early and address any discrepancies right away
By providing clear guidance and support, you can ensure your employees are ready to tackle tax season and make the most of their HSA accounts. Need help or have questions? Contact us.
Resources: Alegeus.
