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knoxultimateauto
February 18, 2023
Question

Trying to set up an HSA tax free deduction for 2 of my employees - I got it set up but it doesn't show where to connect the deduction to an HSA account? Thanks!

  • February 18, 2023
  • 1 reply
  • 0 views
I see the deduction set up but no indication of where the money is going once deducted.

1 reply

C
ChristineJoieR
February 18, 2023

I recognize the need to see the payroll accounts and where the amount goes. I'll show you the way, @knoxultimateauto. 

 

QuickBooks Online Payroll automatically creates default accounts where your payroll liabilities and expenses are recorded. 

 

Follow these steps:

 

  1. Go to the Payroll Settings.
  2. Navigate to Accounting Preferences.
  3. Then, view them in the Other Liabilities and Assets.

 

Moreover, discover how to manage your payroll transactions and payroll settings. Visit this page for your guide: Change your accounting preferences in QuickBooks Online Payroll.

 

I'm also adding this article on how to track HSA contributions in QuickBooks Online: Set up a Health Savings Account (HSA) item in QuickBooks Payroll.

 

You can still post here for any further concerns with your payroll task. I'm always willing to help. Take care.

K
knoxultimateautoAuthor
February 18, 2023

So - this still doesn't explain how the withheld deduction is deposited into the employee's HSA account - is that something quickbooks handles (and if so, why was I not required to enter deposit account information) - OR - is this a manual transfer I do in my quickbooks desktop program (which would seem a little odd with the system having the employer transfer funds off "books" with out any definite proof the transfer was made, thereby creating a serious liability for Quickbooks (I would imagine) as well as the employer should a cash-strapped employer not make the contributions.  Additionally, if the actual deposit is made by the employer how does Quickbooks transfer the funds back to the employer for deposit.  

 

Thanks!

 

A
Amanda146
August 28, 2023

Hello!

Did you ever get an answer to this question? I have been contributing to a company HSA and it shows at paid. But the money never comes out of my business checking and it never gets added to their paycheck. I don't know where the money went. But it says they received it and I never set up any information for it, just added it to the pay types. 

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