If an employer maintains a high-deductible health insurance plan and contributes to a Health Savings Account (HSA) for an employee, the employer can deduct their contributions. Contributions are not taxed to employees and are exempt from payroll taxes.
Specific Details
The parents reduced their business income by $5,000 by deducting contributions to Health Savings Accounts for his employees. Since the parents income was assessed at 47% the decrease in income may increase the childs financial aid eligibility by $2,350 ($5,000 x 47%).
Potential Savings
If you are in a financial aid income assessment rate of 47%, you could increase your financial aid eligibility up to $470 for every $1,000 deducted for contributions to Health Savings Accounts.