Can I correct excess employee hsa contributions? I made the mistake, not the employee, but they are not employer contributions.

mschuitema · ‎October 25, 2021

JoesemM · ‎October 25, 2021

Thanks for the prompt reply, @mschuitema.

Since the contributions were already made, you can contact your employee and have an internal agreement about the excess amount. This is to discuss if they want to reimburse the contributions or not.

In case they want a refund for the excess HSA contribution, you can add the reimbursement pay type. Just follow the steps below:

Select the Payroll menu.
Click Employees.
Choose the employee's name.
Tap the Pencil icon beside Pay.
Under How much do you pay, select Add additional pay types.
Select Even more ways to pay drop-down, then select Reimbursement.
Hit Done.

The Reimbursement item appears in the Pay column when you create a paycheck for the employee. The reimbursement won't affect the total insurance amount paid to your employee. And, this payment won't show up on the W-2 form since it's a non-taxable pay type.

I'll be adding these articles that will guide you in managing your employee's contribution in QuickBooks:

If you need to check on your employee's year-to-date data, you can run a variety of payroll reports in QuickBooks. This article can provide more details about them: Run payroll reports.

That should answer your question for today. Stay in touch with me here if there’s anything else I can do to help you succeed today. Take care and have a good one, @mschuitema.

View solution in original post

Tori B · ‎October 25, 2021

Good morning, @mschuitema.

Thanks for reaching out to the Community for support. I hope you're enjoying the day so far.

We can make changes to employees HSA Contributions. To do this, we will edit the HSA from the employee profile. I've included some steps to make changes below.

Go to Payroll menu and select Employees.
Choose the employee's name.
Tap edit beside Pay.
Click the Edit icon next to the contribution you want to edit.
Make any necessary changes.
Select OK, then Done.

For additional details about this process, check out the help articles I've included below.

I'm always around if you have any questions or concerns. Take care and have a wonderful week!

mschuitema · ‎October 25, 2021

Thanks for the quick response. I'm referring to contributions already made. Maybe nothing can be done through QB. I didn't have the correct limit associated with the contribution, so they went over the yearly limit. I was hoping to correct it so the employee doesn't have to pay taxes on the excess since it wasn't his fault. I've already corrected his profile so no more will come out of his paycheck. Do you know if there's a process to correct what's already been contributed? Thank you.

JoesemM · ‎October 25, 2021

Thanks for the prompt reply, @mschuitema.

Since the contributions were already made, you can contact your employee and have an internal agreement about the excess amount. This is to discuss if they want to reimburse the contributions or not.

In case they want a refund for the excess HSA contribution, you can add the reimbursement pay type. Just follow the steps below:

Select the Payroll menu.
Click Employees.
Choose the employee's name.
Tap the Pencil icon beside Pay.
Under How much do you pay, select Add additional pay types.
Select Even more ways to pay drop-down, then select Reimbursement.
Hit Done.

The Reimbursement item appears in the Pay column when you create a paycheck for the employee. The reimbursement won't affect the total insurance amount paid to your employee. And, this payment won't show up on the W-2 form since it's a non-taxable pay type.

I'll be adding these articles that will guide you in managing your employee's contribution in QuickBooks:

If you need to check on your employee's year-to-date data, you can run a variety of payroll reports in QuickBooks. This article can provide more details about them: Run payroll reports.

That should answer your question for today. Stay in touch with me here if there’s anything else I can do to help you succeed today. Take care and have a good one, @mschuitema.

julcpa68 · ‎July 06, 2022

These responses are not helpful at all. I need an answer that will correct my 941 and the employees W2 form. If there isn't a way to work this, QBO needs to get on this problem.

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Can I correct excess employee hsa contributions? I made the mistake, not the employee, but they are not employer contributions.