How can I refund an employee for over withholding a pre tax contribution (HSA). I want to be able to give the refund as well as correct the W-2. Using QB online

Hello there, mrowco.

We can edit the setup of your employee to add the new pay type and processing a refund for your employee's over withheld health insurance. It will only take a few clicks to do it. I'll guide you how:

To start, you’ll need to add Reimbursement as a pay type. Here’s how you do it:

1. Go to the Payroll menu.
2. Choose Employees.
3. Click the Pencil icon beside Pay.
4. Under How much do you pay this employee? Click Add additional pay types.
5. Select the Reimbursement checkbox.
6. Hit Done.

The Reimbursementitem appears in the Pay column when you create a paycheck for the employee once the reimbursement pay type is added.

For more information on how to process reimbursement, please see this article: Reimburse an employee.

Just in case, I'll add these articles for future reference:

• Set up and record S-Corp health insurance.
• Supported pay types and deductions explained.

Don't hesitate to get in touch with me here anytime you need a helping hand. I always have your back.