Which term describes the sum paid by an employer into an employee's HSA?

The term that describes the sum paid by an employer into an employee's Health Savings Account (HSA) is "Employer contribution." This is a key aspect of HSAs, as these accounts are designed to allow employees to save money for qualified medical expenses on a tax-advantaged basis. Employers can enhance their employees' ability to save for healthcare costs by making contributions to their HSAs.

These contributions can either be a fixed amount or a percentage of an employee's salary, and they are typically tax-deductible for the employer. This encourages both employers and employees to engage with the HSA system, promoting a culture of savings for healthcare needs.

In contrast, other terms mentioned, such as employee premium, refer to payments made by the employee for insurance coverage, tax credits are reductions in tax liability rather than direct contributions to HSAs, and insurance benefits typically relate to the coverage provided by a health insurance policy rather than contributions toward HSAs. Understanding these distinctions is essential for comprehending how health savings accounts operate within the broader context of employee benefits and healthcare financing.