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mcurran
Jan 21, 2021 4:39 PM UTC
Question

How do I set up employee direct deposit for their HSA contributions? We use QBO Payroll. Right now, it is a deduction, a non-taxable reimbursement and a direct deposit.

In order to direct deposit, I have to "give" their money back once it is deducted as a pre-tax HSA contribution and this seems to be the only way that is possible. The biggest issue is that employee gross wages now look artificially high on their paystubs.

    9 replies

    MadelynC
    Jan 21, 2021 6:21 PM UTC

    The Community has you covered, @mcurran.


    Let me share some information with you about Health Savings Account (HSA) plans in QuickBooks Online Payroll.


    Currently, we can only set up contributions to HSA plans for tracking purposes. Intuit payroll services do not send employee withdrawn funds or company contributions to plan providers. You’ll want to handle it manually. 

     

    I have an article here that tackles HSA plans. The reference will enable you to add the employee’s contribution to the HSA plan for every pay period. You can check it to learn more.


    Please keep in touch with me here for all your QuickBooks Payroll needs. I’m always around. Have a good day.

    mcurranAuthor
    Jan 21, 2021 7:00 PM UTC

    This isn't helpful, I'm sorry to say. The article listed below outlines a way in which to direct deposit employee HSA contributions but I want to make sure I am doing it correctly since this is clearly a "workaround". It is 2021. Quickbooks is not properly serving your payroll customers with this limitation. You do realize, that without the ability to direct deposit HSA funds your customers need to manually send a paper check to the HSA bank with a manual list of employees and account numbers to deposit their contributions? This is NOT acceptable. This is functionality that must be added to QBO ASAP. Please do not respond with a canned response and an unhelpful article. That will not constitute and appropriate or helpful answer.

     

    https://quickbooks.intuit.com/learn-support/en-us/other-payroll-additions-or-deductions/how-to-set-up-the-tax-tracking-type-hsa-emp-pre-tax-for-employee/00/369413

      PPGAndrea
      Nov 15, 2022 10:01 PM UTC

      I am having the same issue.  Did anyone get you a suitable workaround?

        PresCab476
        Jul 5, 2023 6:40 PM UTC

        Wondering if direct deposit of HSA funds is available yet?

          QueenC
          Jul 5, 2023 7:45 PM UTC

          Hello there, @PresCab476.

           

          For the time being, direct deposit for Health Savings Account (HSA) Funds is still not available in QuickBooks Online (QBO). Only for tracking purposes may we put up contributions to HSA plans. Employer distributions and employee withdrawals are not sent to plan providers via Intuit payroll services. As a workaround, you may want to perform it manually through bank transfers.

           

           Additionally, should you need to edit or delete a deduction from your employee which comes out from their pay each payday, check out this article I've got for you: Set up, change, or delete employee-paid payroll deductions in QuickBooks Online Payroll and QuickBooks Desktop Payroll.

           

          If I can be of assistance in all your QuickBooks payroll-related tasks, please don't hesitate to tag me in the comments below. I'll be more than willing to help you out. Keep safe and have a good one.

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