Set two employees up with HSA PreTax. The W-2 does not reflect the pretax in the wages for federal, state, or local. How to adjust before efiling and giving out W-2

Thanks for reaching out to the Community, mmorgan-aufman-n.

Initially, you'll want to confirm if your employees are eligible for HSA qualifications before they can contribute to an HSA. You can do so by checking with your plan provider and reviewing IRS Publication 969.

Contributions are pre-tax if they're made pursuant through a cafeteria plan (Section 125 plan). The HSA amount will be reported on Form W-2 in Box 12 with a "W" code.

If none of this explains why you aren't seeing it reflected on the W-2, I'd recommend checking your HSA contribution setup.

Here's how to check for employees:
 

1. In the left navigation bar, go to Payroll, then Employees.
2. Click an employees display name.
3. From your Deductions & contributions section, hit Start or Edit.
4. Press + Add deduction/contribution.
5. Use the Drop-down list (▼) icon and choose HSA plans for Deduction/contribution type and Pretax HSA or Taxable HSA for Type.
6. Enter a Description(appears on paycheck).
7. Specify how your contribution is calculated, then detail an amount or percentage.
8. Add an Annual maximum amount.
9. Select Save, then Done.

I'd also recommend checking your employer HSA contribution set up.

I'll be here to help if there's any additional questions. Have a great Thursday!