Skip to main content
A
AbbyHCU
January 13, 2022
Solved

Adding Employer Contributed HSA to paystubs and W2s

  • January 13, 2022
  • 1 reply
  • 0 views

My employer contributes to an employee's HSA.  Can I list that to show on the pay stub separate from what the employee contributes and then combined on the W-2 in Box 12, W?

Best answer by mv32

I can guide you with setting up employer contributed HSA to paystubs and W2s, @AbbyHCU.

 

First, let's ensure your tax table is updated. Besides, before we set up the employer's contributions payroll items, I recommend referring to your professional tax advisor/accountant to determine the tax tracking type to be used in these items.

 

The tax tracking type determines how the payroll item appears on the paystubs and W2s.

 

Here's how to create a contribution HSA payroll item:

  1. From the List menu, select Payroll Item List. 
  2. Click the Payroll Item button, then select New. 
  3. Select Custom Setup and click Next.
  4. Select Company Contribution and click Next.
  5. Name the item and click Next.
  6. Select the Liability account and Expense account and click Next.
  7. Set the Tax Tracking Type either HSA Co. (Nontaxable) or (Taxable), and click Next.
  8. In the Taxes window, click Next.
  9. In the Calculate based on quantity window, select Neither and click Next.
  10. Enter a Default rate and limit, if applicable or leave them blank, and click Finish.

 

I'm also adding these articles to know more about this process:

 

 

In case you need to set up employee benefits in the future, take a look at this article for details: Set up or change a retirement plan.

 

Please come back to this thread if you have other questions about adding employer contributed HSA. I'd be delighted to help. Take good care!

1 reply

M
mv32Answer
January 13, 2022

I can guide you with setting up employer contributed HSA to paystubs and W2s, @AbbyHCU.

 

First, let's ensure your tax table is updated. Besides, before we set up the employer's contributions payroll items, I recommend referring to your professional tax advisor/accountant to determine the tax tracking type to be used in these items.

 

The tax tracking type determines how the payroll item appears on the paystubs and W2s.

 

Here's how to create a contribution HSA payroll item:

  1. From the List menu, select Payroll Item List. 
  2. Click the Payroll Item button, then select New. 
  3. Select Custom Setup and click Next.
  4. Select Company Contribution and click Next.
  5. Name the item and click Next.
  6. Select the Liability account and Expense account and click Next.
  7. Set the Tax Tracking Type either HSA Co. (Nontaxable) or (Taxable), and click Next.
  8. In the Taxes window, click Next.
  9. In the Calculate based on quantity window, select Neither and click Next.
  10. Enter a Default rate and limit, if applicable or leave them blank, and click Finish.

 

I'm also adding these articles to know more about this process:

 

 

In case you need to set up employee benefits in the future, take a look at this article for details: Set up or change a retirement plan.

 

Please come back to this thread if you have other questions about adding employer contributed HSA. I'd be delighted to help. Take good care!

    T
    travis3684-
    November 18, 2022

    New to online quick books,  our old program allowed us to add health ins contribution to an employees paycheck.  His wife pays for his health care and we reimburse her.

    katherinejoyceO
    katherinejoyceO
    November 18, 2022

     

    Thanks for joining in this conversation, @travis3684-. I want to make sure your concern is addressed. Are you trying to record the reimbursement of the HSA in QuickBooks?

     

    If so, I'll show you how to record or reimburse your employees' business-related expenses in QuickBooks Online:

     

    1. Click the + New, then select Check or Expense.
    2. Click the Payee dropdown and find the name of your employee.
    3. Select the Category dropdown, then choose a liability account. If you don't have one yet, follow the steps to add a new account. If you're using Online payroll, create a reimbursement account.
    4. Enter all the necessary information.
    5. Select Save and close.

     

    You can also record the expense for future payments as journal entry. Check out this article to get more insights about this process: Reimburse an employee.

     

    If you mean something different, please let me know by adding your comment below. I'll be there to guide you again.

    Terms & ConditionsAccessibility statement