cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Active Member

How do you make an HSA employer contribution on QB online? And does the employer contribution need to be on the W-2?

 
5 Comments
QuickBooks Team

Re: How do you make an HSA employer contribution on QB online? And does the employer contribution...

The Community has you covered, @ksundman.

 

Check out the steps below to make an HSA Employer Contribution in QB Online:

 

Create An HSA Employer Contribution

  1. From QuickBooks Online, navigate to the Workers tab and the Employees section.
  2. Click the name of the employee, then click the tiny Pencil icon ✎ next to Pay.
  3. Under How much do you pay this employee?, click Add additional pay types or the Pencil icon ✎ depending on what you see.
  4. Click Even more ways to pay this employee to expand the pay type list and select Company HSA Contribution.
  5. Enter a recurring amount to contribute each payday, or leave it blank to enter the amount manually each paycheck.
  6. Click Done.

These instructions are also available from our guide on setting up company HSA contributions here. Doing this will enable you to add the employer's contribution to your employee's HSA plan for every pay period.

 

Regarding your question on how this item should affect the employee's W2, the guide states that your contributions to an employee's HSA are reported in Box 12 but excluded from federal wages and most state wages. You can learn about this and the taxability of all QBO-supported pay types, deductions, and contributions in our thorough article on the matter here

 

Please keep in touch with me here for all your QuickBooks needs. Thanks for coming to the Community, cheers to a successful and stress-free tax season for your business.

Experienced Member

Re: How do you make an HSA employer contribution on QB online? And does the employer contribution...

I am trying to properly enter a $3,450 HSA employer contribution for tax year 2018 and am getting stuck on the following per the instructions already posted. 

 

Note that I am using QuickBooks Online Simple Start, but imagine there's got to be a way to do this properly without having to upgrade as I haven't needed and don't need the additional features of the more expensive plans as I run a small S-Corp business where I'm both employer and employee.

 

In step 2. of the instructions where it says:

 

Click on the name of the employee, then click the tiny Pencil icon next to Pay, I simply don't get this option showing up anywhere in the pop up window for Employee Information (per screenshot I took of the available fields). 

 

Can someone please let me know why this is?

 

Also, is there a different approach to making a HSA employer contribution in QBO Simple Start other than the method already suggested here? By creating the proper account in Chart of Accounts and mapping it to the employer/employee somehow?

 

Thanks!

Moderator

Re: How do you make an HSA employer contribution on QB online? And does the employer contribution...

Hello mn8err,

 

You can use the Payroll feature with the Simple Start version. It's an add-on service that requires you to sign up. That's why the Pencil icon  is not showing up. 

 

Here's how:

  1. From the Workers menu, go to the Employees tab.
  2. Click on Get started
  3. Select Turn on payroll
  4. Choose either Try Self Service Payroll or Try Full Service Payroll.
  5. Click on Get started
  6. Follow the instruction on how to set up your payroll.

Please note that you can only enter prior payrolls for this year 2019. You can also click on this link to see articles that'll help you set up your payroll: https://quickbooks.intuit.com/learn-support/en-us/payroll-and-workers/07?product=QuickBooks%20Online

 

If you're not ready to use our Payroll Service yet, here's a reference on how to manually record payroll transactions using journal entries: Record payroll transactions manually

 

We are always here to help you with anything. Please post your questions. 

Experienced Member

Re: How do you make an HSA employer contribution on QB online? And does the employer contribution...

Thanks for your reply GarlynGay, 

 

I did just go through the steps to turn on Self-Service Payroll, but after all the many steps, I still don't get the pencil icon showing up anywhere that I can see next to "Pay" anywhere. See the screenshot.

 

I also already run payroll through Gusto and so this seems like a heck of a lot of steps to just enter an Employer HSA contribution when there's got to be an easier way.

 

I was thinking of adding the name of the HSA vendor to my Vendor list as they received the HSA contribution and then just need to know what sort of proper account to set up in my chart of accounts to get the transaction (which was a written check) at least out of my "for review" items and into my register so I can reconcile some bank statements.

 

Good to see how the self-service payroll feature is set up, but seems overkill for my purposes for now as I already use a payroll service.

Moderator

Re: How do you make an HSA employer contribution on QB online? And does the employer contribution...

Hi there, @mn8err,

 

I can add a bit more information about setting up an HSA contribution in QuickBooks Online.

 

You're on the right track with the set up, you only need a few more steps to get things done. When you click the employee name, you will see the pencil icon beside the Pay section. Click on the Edit employee button, if you don't see this option. Please see the screenshot below:

 

 

Next, follow the steps below to complete the set up:

 

  1. On the Pay window, go to section 4, click on Add additional pay types.
  2. Click to expand the Even more ways to pay this employee section.
  3. Put a mark on the Company HSA Contribution box.
  4. Add the amount on the Recurring amount section.
  5. Hit Done.

Please let me know how the steps goes. I'll be around if you need further help with QuickBooks. Have a nice day!