Hi Experts,
Our client has a requirement where the Health Savings Account (HSA) employer contribution should increase the employee tax base for
withholding and unemployment taxes for the state of California. This wage type is employer contribution and is not paid to employee. i.e this will not affect the net pay of the employee directly. But the tax base on which withholding and unemployment taxes are calculated should be increased by the amount of employer HSA contribution. In other words though this amount is not paid to employee, employee is liable to pay tax on this benefit. Please suggest how this can be achieved.
Regards,
Poorvi.