HSA contributions for employees belongs on Line 14, employee benefit programs.
Why line 14
Contributions you make to a W-2 employee's health savings account are part of the health benefits you provide, so they belong on line 14 alongside the premiums. The split that matters is owner versus employee: money you put into your own HSA is a personal deduction taken on Schedule 1, not a business expense on Schedule C. Only the employer contributions made for employees reduce your Schedule C profit.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so HSA contributions for employees lands on Line 14 without you sorting it.
Start for freeWhat HSA contributions for employees is confused with
- Schedule 1 line 17, schedule 1 line 17, self-employed health insurance
- Owner health costs leave Schedule C entirely: your own premiums go to the self-employed health insurance deduction and your own HSA contribution to its own Schedule 1 line.
- Line 26, wages
- Employee contributions made by salary reduction are already inside gross wages on line 26 and must not be counted again on line 14.
Examples that belong on line 14
- $1,200 a year contributed to each of two employees' accounts alongside a high deductible plan
- A $100 a month employer match processed by your payroll provider
- A one-time $500 seed contribution to a new hire's account
- Employer contributions to an employee's Archer MSA under an existing arrangement
What does not belong here
- Your own contribution as the sole proprietor, which is a personal Schedule 1 deduction
- A contribution for a spouse who is not a genuine W-2 employee
- Employee salary reduction amounts, which are part of wages already
The limit that applies
Employer contributions must satisfy comparability rules across employees when they are made outside a cafeteria plan.
What to keep
Keep payroll reports showing employer contributions per employee, the custodian statements, and proof each employee had qualifying high deductible coverage.
Other expenses on line 14
| Expense | Line |
|---|---|
| an employee educational assistance program | Schedule C, Line 14 |
| an employee wellness or gym benefit | Schedule C, Line 14 |
| dependent care assistance for employees | Schedule C, Line 14 |
| employee health insurance premiums | Schedule C, Line 14 |
| group term life insurance for employees | Schedule C, Line 14 |
Related lookups
Sources
This page explains how Schedule C lines work. It is general information, not tax advice for your situation. If an expense is large or the answer turns on a fact about your business, confirm it with your tax preparer.
Looking for a different expense? The full Schedule C line lookup has every line from 8 to 27 with the expenses that belong on each, and Schedule C expense categories walks the whole form in order.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so HSA contributions for employees lands on Line 14 without you sorting it.
Start for free