My employer's payroll company has coded my HSA deductions under box 12 code DD. My research shows this is technically incorrect since this code should be limited to the employee portion of health insurance premiums (under a cafeteria plan). Right now it shows both my premiums and my portion of the HSA contributions.
Some internet searches show Box 12 code W should show both the employee and employer contributions to my HSA. HR has said they don't do this because our company doesn't bother informing the payroll company about the employer portion of the HSA contributions; they just deposit it directly with the custodian.
A hand check shows that my FICA and FIT have been correctly calculated anyway, so this is not a problem. I also have a tax document from my HSA custodian verifying the amount deposited by employer and employee (net, not separated), so I at least have some proof of what has gone in the HSA.
This seems to confuse TurboTax and screws up their records of my HSA basis, but otherwise my taxes are calculated correctly (I think).
Is this a problem? Should I insist my employer correct this? Are there any potential repercussions if our taxes are otherwise calculated correctly?
Thank you for your time.