Quote Quoting c627627
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Thank you.
What are the implications of employer funding an HSA account and not including that in W2 forms vs. companies that do include that in W2 forms as far as the bottom line goes for employees?
There is no "option" to not include it. It is a requirement of tax law that HSA contributions be listed on your W2. If you have an HSA and your W2 does not include those contributions, your W2 is invalid as it is inaccurate and you need to get a new one.

You must account for all distributions OUT of your HSA in order to avoid paying income tax on those distributions which are technically income. You do not have to pay tax on them provided those distributions are used for qualified expenses, i.e. healthcare costs. But it is YOUR responsibility to prove to the IRS that those distributions were used for qualified expenses.