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forzalazio
March 3, 2020
Question

employee pretax hsa contributions with direct deposit

  • March 3, 2020
  • 2 replies
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How to set up the tax tracking type HSA Emp. Pre-tax for employee contributions to health savings accounts. I have an Anthem Blue Cross HSA Cafeteria Plan, the company contributes to the plan for employees, now i have employees that want to contribute additional funds through direct deposit payroll deductions, how do i set this up

2 replies

O
Online payments and processing
March 3, 2020

@forzalazio Great question. Here's an article with steps to take to add/modify deductions for employees wanting to contribute to your HSA plan. You will need to select the payroll service you are signed up with and follow the instructions given. Please let us know if you need additional guidance to get setup.

 

Set up voluntary deductions in Online Payroll

F
forzalazioAuthor
March 3, 2020

I have desktop edition and prepare payroll myself

O
Online payments and processing
March 3, 2020

@forzalazio Thank you for clarifying on the product you are using. I have found the correct article to help you set that up in QuickBooks desktop payroll.

 

How to set up the tax tracking type HSA Emp. (Pre-tax) for employee contributions to health savings accounts

S
Snowden
February 12, 2021

I have an employee that wants to contribute to his personal hsa how do I set this up where when I run payroll it automatically puts money into his hsa account

DivinaMercy_N
DivinaMercy_N
February 12, 2021

I'm here to help you, @Snowden.

 

Let's first create a pretax employee deduction HSA payroll item:

 

  1. Go to Lists then Payroll Item List. Click the Payroll Item button and choose New.
  2. Select Custom Setup and Next.
  3. Choose Deduction and select Next.
  4. Enter the name of the item and click Next.
  5. Pick the Liability account and Next.
  6. Set the Tax Tracking Type as HSA Emp. (Pretax) and select Next.
  7. From the Taxes window, select Next.
  8. In the Calculate based on quantity window, choose Neither and select Next.
  9. Input a Default rate and limit, if applicable. Otherwise, leave the default rate and limit blank and enter the rate and annual limit in the individual employee's Payroll Info window.
  10. Hit Finish.

 

Then, to have the HSA employee deduction deposit directly into the HSA account, please follow the detailed steps in this article: How to set up the tax tracking type HSA Emp. (Pre-tax) for employee contributions to health savings accounts. 

 

Also, here's a helpful article that will help you in case you want to correct year-to-date (YTD) additions or deductions on a paycheck: Correct year-to-date (YTD) additions or deductions on a paycheck when the wrong tracking type was used. 

 

If you need further assistance about setting up HSA contributions for your employee in QuickBooks, please post a reply below. I'm always around to help. Have a good one. 

E
eabarrett87
May 25, 2021

With regards to your Step #1: where is the "Lists" and "Payroll Item List" that you mention? 

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