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HSA Company Contribution

Our company contributes money to employee HSA accounts.  We hired a new employee and on the employees first payroll I added the Company HSA contribution.  When I ran the employees 2nd payroll I forgot to take that contribution out so it processed it again.  So now it shows he got double the money he should of for his year to date. How do I adjust this error?  

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QuickBooks Team

HSA Company Contribution

Let me share information on how to correct the HSA Employer Contribution in QuickBooks, @sdelong.


You can use liability adjustment to fix the employees’ year-to-date (YTD) payroll info.


First, run a Payroll Checkup to look for errors like missing information and discrepancy. Also, to review employee records, and identify tax amount discrepancies. 


You can now adjust your payroll liability from the Payroll Taxes and Liabilities tab. Here's how:

  1. Select the Employees menu at the top, hover to Payroll Taxes and Liabilities, and select Adjust Payroll Liabilities.
  2. You can use the same date as the last paycheck of the affected quarter or use today's date if you’re working on the current quarter.
  3. Set Employee Adjustment if the item you're adjusting is a company-paid item or Company Adjustment if you want the balance to be removed from the Payroll Liability Balances Report.
  4. Choose the affected employee and complete the Taxes and Liabilities fields.
  5. Click the Accounts Affected and then OK.

Try to check if your liabilities are updated by generating a Payroll Summary Report. In case you've paid the liability already. You'll need to correct the liability check in QuickBooks by editing the Liability Check from the Banking menu. 


Follow the steps below:

  1. From the Banking menu proceed to Use Register.
  2. Click the register you use for payroll, then OK.
  3. Right-click the Liability Check, and select Edit Liability Check.
  4. Go to Payroll Liabilities and update them to match your changes.
  5. Select Save & Close, then Yes.

You can check this reference for more information: Adjust payroll liabilities in QuickBooks Desktop.


In case you've accidentally used a wrong tax tracking with your payroll item, you can have the following article on how to correct it: Correct year-to-date (YTD) additions or deductions on a paycheck when the wrong tracking type was us....


I'm always here to provide help and answer any questions that you may have with your payroll items, and or anything else. Have a great rest of the day!

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