Hi, were you ever able to correct your issues with the taxed health insurance, which should have been pre-taxed? I have a similar issue, however it was an employee that over contributed to their 2019 Health Savings Account (HSA). So the employee received pretax on the overage and should have been taxed. The employee was paid back the overpayment from their HSA account by a third party, where the HSA account is held. I now need to reduce what our records show as employee contribution to their HSA to match their actual account and also tax the employee. I have gotten multiple answers from the QB community, however none seem to be the right solution. I was told to create a payroll liability adjustment, which reduced the employees amount of contribution to HSA to actual, however, it is not taking out the required taxes for the amount the employee overpaid as HSA pretax. I was told to change the tax tracking from pretax to taxable, but that also doesn't seem to create taxes to pay. Do you have any thoughts or suggestions? Should I try a payroll liability adjustment that also includes adjustments for the taxes? I tried to back out the HSA on the payroll check, but QB is not letting me put in a positive number. Did you set up a second payroll item? It would seem if I did that that I would have one account that was over the HSA limit and another account that was the opposite. How will these two accounts show up on a W2. Again, if you have any suggestions, I would greatly appreciate it. Thank you.
