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NatalieSB
Level 1

HSA Employee Deduction for direct deposit

I have QB desktop and have recently started using direct deposit. I already had an HSA account set up previously, and have followed instructions on another thread in order to add a payroll item for the HSA Addition item and also to set it up in the employee's direct deposit in their payroll info. My question is do I add both the deduction and addition payroll items for the HSA in their payroll Additions, deductions, and contributions list? Are they entered to counter balance one another? I've included a screenshot of what I mean.

3 Comments 3
JeveeAdvin__la
QuickBooks Team

HSA Employee Deduction for direct deposit

I appreciate for adding a screenshot to help us visualize what you're referring to, NatalieSB. Yes, we can add both the deduction and addition payroll items for the HSA in their paycheck and the entries aren't to offset one another. Allow me to provide more information for your complete guidance.

 

When you set up an employee's deduction item, the amount will show as negative because they affect the employee's net pay. While setting up the company's contribution it will show as positive amount because it doesn't affect employee's net pay.

Please see the attached screenshot below:

image (25).png

For more information on how to track HSA contributions in QuickBooks Online and QuickBooks Desktop Payroll, check out this article: Set up a Health Savings Account (HSA) item in QuickBooks Payroll.

 

For your future reference regarding the process of inviting your employees to utilize QuickBooks Desktop Payroll for accessing and printing their pay stubs and W-2 forms online, please refer to the accompanying article: Invite your employees to QuickBooks Workforce to see pay stubs and W-2s if you use QuickBooks Deskt....

 

Ensuring that your employee deductions and contributions are set up correctly is crucial for legal compliance, financial accuracy, and maintaining employee trust. If you have any further questions regarding this matter, feel free to leave a message here, and we'll provide the assistance you need. Have a nice one.

NatalieSB
Level 1

HSA Employee Deduction for direct deposit

Thanks for the confirmation on how I have things set up and the additional information!

SheandL
QuickBooks Team

HSA Employee Deduction for direct deposit

Hi there,  NatalieSB.

 

It’s wonderful to hear that the confirmation and details provided by my colleague were useful for your HSA employee deduction and direct deposit setup. In the Community space, we aim to ensure that our customers enjoy a seamless experience and have the clarity they need.

 

If you have any further inquiries or need additional support, please do not hesitate to get in touch. We are here to assist you.

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