How do I set up employee direct deposit for their HSA contributions? We use QBO Payroll. Right now, it is a deduction, a non-taxable reimbursement and a direct deposit.

The Community has you covered, @mcurran.

Let me share some information with you about Health Savings Account (HSA) plans in QuickBooks Online Payroll.

Currently, we can only set up contributions to HSA plans for tracking purposes. Intuit payroll services do not send employee withdrawn funds or company contributions to plan providers. You’ll want to handle it manually. 

I have an article here that tackles HSA plans. The reference will enable you to add the employee’s contribution to the HSA plan for every pay period. You can check it to learn more.

Please keep in touch with me here for all your QuickBooks Payroll needs. I’m always around. Have a good day.

This isn't helpful, I'm sorry to say. The article listed below outlines a way in which to direct deposit employee HSA contributions but I want to make sure I am doing it correctly since this is clearly a "workaround". It is 2021. Quickbooks is not properly serving your payroll customers with this limitation. You do realize, that without the ability to direct deposit HSA funds your customers need to manually send a paper check to the HSA bank with a manual list of employees and account numbers to deposit their contributions? This is NOT acceptable. This is functionality that must be added to QBO ASAP. Please do not respond with a canned response and an unhelpful article. That will not constitute and appropriate or helpful answer.

https://quickbooks.intuit.com/learn-support/en-us/other-payroll-additions-or-deductions/how-to-set-u...

I am having the same issue.  Did anyone get you a suitable workaround?

Wondering if direct deposit of HSA funds is available yet?

Hello there, @PresCab476.

For the time being, direct deposit for Health Savings Account (HSA) Funds is still not available in QuickBooks Online (QBO). Only for tracking purposes may we put up contributions to HSA plans. Employer distributions and employee withdrawals are not sent to plan providers via Intuit payroll services. As a workaround, you may want to perform it manually through bank transfers.

 Additionally, should you need to edit or delete a deduction from your employee which comes out from their pay each payday, check out this article I've got for you: Set up, change, or delete employee-paid payroll deductions in QuickBooks Online Payroll and QuickBoo....

If I can be of assistance in all your QuickBooks payroll-related tasks, please don't hesitate to tag me in the comments below. I'll be more than willing to help you out. Keep safe and have a good one.

Anyone have a workaround? Ridiculous that direct deposit isn't an option through payroll!

I understand the importance of setting up employee direct deposit for their Health Savings Account (HSA) contributions using QuickBooks Online (QBO) Payroll, SarahCPA7.

As mentioned by my colleague above, direct deposit for HSA contributions is currently not supported in QBO. We can only set up contributions to HSA plans for tracking purposes. As a workaround, you can consider manually executing the process through bank transfers.

I've added this article to learn more about employee's HSA contributions: Set up Health Savings Account (HSA) plans.

In case, you'll want to set up voluntary deductions in the future, check out this article for the steps: Set up, change, or delete employee-paid payroll deductions.

Don't hesitate to tag me in the comments below if you have other questions about HSA contributions. I'll be more than willing to help you out. 

When do you plan on fixing this problem of not being able to deposit pre-tax HSA directly into an employees HSA bank account. This thread was started over 3 years ago and it appears that Intuit hasn't done anything to solve this severe limitation.

At this moment, we do not have a specific timeline for the implementation of the requested feature, @Bill55-8. However, I highly encourage you to submit a detailed feedback request to our product development team through your QBO account. Your insights are invaluable, as they help us understand user needs and prioritize future updates.

To send feedback, follow the below steps:
 

1. Go to the Gear icon at the top.
2. Select Feedback.
3. Enter your comments or product suggestions.
4. Then, hit Next to submit feedback.

If you need to change a deduction from your employee's paycheck in the future, check out this article: How to Set Up, Change, or Delete Employee-Paid Deductions in QuickBooks Online Payroll. It offers clear steps to help you manage deductions effectively.

Thank you for taking the time to read this information. We’re here to help you manage your payroll efficiently. If you have any questions or need further assistance, please add them in the comments below.