How do I send HSA contributions deducted from an employee's payroll to their HSA account?

Greetings, @marcarr69. I'd like to share some knowledge on managing HSA contributions.

Only QuickBooks Desktop offers the ability to direct deposit the contribution into the HSA account. As a result, you'll have to perform it manually for your QuickBooks Online company. Here's how:

1. Open the Payroll menu, then choose Employees.
2. Pick your employee.
3. Go to Deductions & contributions, and click on Start or Edit.
4. Choose + Add deduction/contribution.
5. Click on the ▼ dropdown menu and select:
   • Deduction/contribution type: HSA plans
   • Type: Pretax HSA or Taxable HSA.
6. Fill in a Description(appears on paycheck).
7. Select how you'd like to deduct the plan: Flat amount or percentage of gross. Then type in the amount or percentage.
8. Add an Annual maximum amount.
9. Once finished, click on Save then Done.

See this link for more information on how to track HSA contributions: Set up a Health Savings Account (HSA) item in QuickBooks Payroll.

I'll also add this guide to keep track and manage payroll transactions in QBO: Run and customize payroll reports in QuickBooks Online Payroll.

Please let us know if this goes. We'll be more than glad to assist you further with payroll or QuickBooks in general. Take care!

I completed these steps, but the actual HSA contribution that the employees made did not go into their HSA account. It seems like there is a step missing to map the contributions to the outside HSA employee accounts. Now it looks like the company paid the money- the employee is out the HSA amount, and there is no money in their actual HSA account.  Can this be explained if there is a step missing? 

I understand the importance of sending the HSA amount to the actual bank account, tiffany.

Intuit payroll services do not send employee withdrawn funds or company contributions to plan providers. The steps shared above are used for tracking purposes. As a workaround, you’ll want to send it manually via transfers or other method. 

For more details about setting up HSA in QuickBooks Online, please see this article: Set up a Health Savings Account (HSA) item in QuickBooks Payroll.

Once done, you can run payroll to include the amount in the paycheck.

Moreover, I've added these articles to help you view your business and employees' information. It'll help you keep track of your record to ensure it's accurate: Run Payroll Reports.

Please keep us posted if you have additional questions about setting up payroll deductions or contributions. We're always here to help you out.

Okay, so where does the money go that is identified for tracking as 'pretax' from the employees paycheck.  But it is removed from the company's account and demonstrated as paid but it is not actually paid.  

I appreciate your prompt reply, tiffany.

In QuickBooks Online Payroll, when a pre-tax deduction amount is subtracted from an employee's paycheck, it is not given directly to the employee or taken from the company's account. Instead, it is used for tracking purposes to calculate the employee's taxable income and deductions for tax reporting.

As the responsible party, you will send the pre-tax deduction amount to the employee's HSA account, as QBO does not automatically handle this process.

In addition, you can utilize the payroll reporting features in QBO. These reports can be customized to suit your specific needs, allowing you to manage payroll taxes and monitor employee expenses effectively.

I'll be here if you need more help managing payroll or any related concerns. Have a good one!

I completed all the steps, but I am not sure how to send/deposit money over to the employee's bank account.

Hello, tania.

I'm here to help you deposit money into the employee's bank account in QuickBooks Online (QBO).

In QuickBooks Online, you can easily send money or make direct deposits to your employees' bank accounts by setting up and running payroll. Here's a step-by-step guide on how to do this:

Step 1: Set Up Payroll
 

1. If you haven't already set up payroll in QuickBooks Online, follow these steps:
2. Log in to your QuickBooks Online account.
3. From the left sidebar, click on "Payroll" or "Workers" (the name may vary depending on your QuickBooks version).
4. Click on the "Get started with payroll" or "Set up payroll" button.
5. Follow the prompts to set up your company's payroll, including entering your employees' information, tax details, and payment preferences.
    

Step 2: Run Payroll
 

1. Once payroll is set up, you can run payroll to send money to your employees' bank accounts:
2. In the "Payroll" or "Workers" section, select "Run payroll."
3. Choose the pay schedule (e.g., weekly, biweekly, monthly) and the pay period you want to process.
4. Select the employees you want to pay for this payroll run.
5. Enter the hours worked, salary, or other payment details for each employee.
6. Review the payroll summary to ensure accuracy.
7. Click "Submit payroll" or a similar button to process the payroll.
8. Tap "Submit payroll."

You can check this article for more details: Get started with QuickBooks Online Payroll

Additionally, I added this article for further reference with pulling up payroll reports: Run payroll reports in QuickBooks Online Payroll.

Moreover, you can utilize the memorize report feature in QBO. This way, you can use your previous customization.

Let me know if you have more concerns about setting up payroll. The Community always has your back. Have a good one!

Hi just curious if you ever figured it out? As I'm trying to figure out the same thing right now. Thanks!

Let me share some additional information about sending HSA contributions deducted from an employee's payroll to their HSA account while waiting for @marcarr69 answer, lilbaozi.

QuickBooks Online enables you to set up and oversee your employees' Health Savings Accounts (HSA) contributions and deductions. However, QBO doesn't have an inbuilt feature to send these contributions to their HSA account directly. Thus, you will need to do this manually by mailing the contributions outside of the system. 

I see the importance of having this functionality in QBO. Thus, I recommend sending a feature request to our product engineering team so they can consider adding this feature in the upcoming updates. To do so, here's how:

1. Click the Gear icon.
2. Select Feedback.
3. Enter your comments, then hit Next to submit your feedback.

Furthermore, you can visit this article if you wish to know what to prepare for this year's payroll: Year-end checklist for QuickBooks Online Payroll.

Feel free to get back to this thread if you have further questions regarding sending HSA contributions to their account while using QBO. We're always ready to assist you.

QuickBooks is not able to directly transfer or ACH the contributions. Therefore you must write a check and send to the HSA. Unfortunately, our HSA does not allow to accept checks, they will only accept direct deposits. There was just no way we could make it work so we had to stop doing the HSA for employees. Hope this helps. 

Thank you! It really helped! Why couldn't you just write a check to the employee directly? 

Thank you, it helped a lot! I'm just curious how come you couldn't just write a check to your employee directly?