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DBCPA
Level 1

How to set up employer contributions to employee HSA

I am using enhanced payroll on desktop QB pro.  I do not see an option from a drop down box or in setup or in payroll item list to add an employer contribution to an employee's HSA or a Simple.  How do I set up these two employer contributions?

1 Comment 1
MaryGraceS
Moderator

How to set up employer contributions to employee HSA

Hello there, @DBCPA.

 

It's nice to have you in the Community. I'd be glad to assist you in setting up the employers' contribution in QuickBooks Desktop. 

 

To start, let's make sure your tax table is updated. Also, before we set up the employer's contributions payroll items, please refer to your professional tax advisor or accountant to identify the tax tracking type to be used in these items.

 

The tax tracking type determines how the payroll item appears on the tax forms.

 

Here's how to create a contribution HSA payroll item:

  1. From the List menu, select Payroll Item List
  2. Click the Payroll Item button then select New
  3. Select Custom Setup and click Next.
  4. Select Company Contribution and click Next.
  5. Name the item and click Next.
  6. Select the Liability account and Expense account and click Next.
  7. Set the Tax Tracking Type either HSA Co. (Nontaxable) or (Taxable), and click Next.
  8. In the Taxes window, click Next.
  9. In the Calculate based on quantity window, select Neither and click Next.
  10. Enter a Default rate and limit, if applicable or leave them blank, and click Finish.

For more details about this this process, I recommend checking these articles: 

Also, if you're referring to Simple IRA, the following article contains additional information about this, as well as the steps for setting up this item: Set up a payroll item for retirement benefits.

 

For additional help, feel free to reach out to our payroll support. They have the tools that can help you get to a resolution quickly.

 

Here's how you can reach them: 

  1. Go to: http://payroll.intuit.com/support/contact.
  2. Click the Payroll button. 
  3. Click the View Contact Info button. 

These resources should help to set up the employer's contributions in QuickBooks successfully.  Keep me posted on how it goes. I'll be happy to help you further.

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