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M
marcarr69
November 18, 2022
Question

How do I send HSA contributions deducted from an employee's payroll to their HSA account?

  • November 18, 2022
  • 2 replies
  • 0 views
I have their routing number and account number to their HSA but how do I sent the funds to their account after deducting from their paychecks?

    2 replies

    M
    Mich_S
    November 18, 2022

    Greetings, @marcarr69. I'd like to share some knowledge on managing HSA contributions.


    Only QuickBooks Desktop offers the ability to direct deposit the contribution into the HSA account. As a result, you'll have to perform it manually for your QuickBooks Online company. Here's how:

     

    1. Open the Payroll menu, then choose Employees.
    2. Pick your employee.
    3. Go to Deductions & contributions, and click on Start or Edit.
    4. Choose + Add deduction/contribution.
    5. Click on the ▼ dropdown menu and select:
      • Deduction/contribution type: HSA plans
      • Type: Pretax HSA or Taxable HSA.
    6. Fill in a Description(appears on paycheck).
    7. Select how you'd like to deduct the plan: Flat amount or percentage of gross. Then type in the amount or percentage.
    8. Add an Annual maximum amount.
    9. Once finished, click on Save then Done.

     

    See this link for more information on how to track HSA contributions: Set up a Health Savings Account (HSA) item in QuickBooks Payroll.

     

    I'll also add this guide to keep track and manage payroll transactions in QBO: Run and customize payroll reports in QuickBooks Online Payroll.

     

    Please let us know if this goes. We'll be more than glad to assist you further with payroll or QuickBooks in general. Take care!


     

    T
    tiffanyfergs
    September 10, 2023

    I completed these steps, but the actual HSA contribution that the employees made did not go into their HSA account. It seems like there is a step missing to map the contributions to the outside HSA employee accounts. Now it looks like the company paid the money- the employee is out the HSA amount, and there is no money in their actual HSA account.  Can this be explained if there is a step missing? 

    C
    CharleneMaeF
    September 10, 2023

    I understand the importance of sending the HSA amount to the actual bank account, tiffany.

     

    Intuit payroll services do not send employee withdrawn funds or company contributions to plan providers. The steps shared above are used for tracking purposes. As a workaround, you’ll want to send it manually via transfers or other method. 

     

    For more details about setting up HSA in QuickBooks Online, please see this article: Set up a Health Savings Account (HSA) item in QuickBooks Payroll.

     

    Once done, you can run payroll to include the amount in the paycheck.

     

    Moreover, I've added these articles to help you view your business and employees' information. It'll help you keep track of your record to ensure it's accurate: Run Payroll Reports.

     

    Please keep us posted if you have additional questions about setting up payroll deductions or contributions. We're always here to help you out.

    S
    SheandL
    January 22, 2024

    Let me share some additional information about sending HSA contributions deducted from an employee's payroll to their HSA account while waiting for @marcarr69 answer, lilbaozi.

     

    QuickBooks Online enables you to set up and oversee your employees' Health Savings Accounts (HSA) contributions and deductions. However, QBO doesn't have an inbuilt feature to send these contributions to their HSA account directly. Thus, you will need to do this manually by mailing the contributions outside of the system. 

     

    I see the importance of having this functionality in QBO. Thus, I recommend sending a feature request to our product engineering team so they can consider adding this feature in the upcoming updates. To do so, here's how:

     

    1. Click the Gear icon.
    2. Select Feedback.
    3. Enter your comments, then hit Next to submit your feedback.

     

    Furthermore, you can visit this article if you wish to know what to prepare for this year's payroll: Year-end checklist for QuickBooks Online Payroll.

     

    Feel free to get back to this thread if you have further questions regarding sending HSA contributions to their account while using QBO. We're always ready to assist you.

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