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Without a Section 125 Plan in place, what would happen to an employee’s payroll contribution to an HSA?
Options
A) It would be considered taxable income to the employee
B) The employee would not be allowed to an HSA
C) The employer would pay payroll tax and FICA on the contribution amount
D) The employer would not be allowed to deduct the contribution from the employee’s pay
Answer: A) It would be considered taxable income to the employee
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