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Established Member

Recording HSA payment

We just wrote a check to our bank to pay for this year's employer HSA contribution. How do I record this check?

 

I can see from last year that the payment is in the Payroll Liablities - HSA account, but if I select that as the account on the check, it takes me into a Pay Liablities UI that ultimately leads to a Pay Liabilities dialog that is empty (I don't have any payroll liabilities to pay.)

 

What do I do to record this check?

 

Thank you.

4 Comments
QuickBooks Team

Re: Recording HSA payment

Thanks for dropping by the Community, @DeborahK.


I’m here to help you get this issue taken care of.


There are two possible reasons why HSA isn't showing on the Pay Liabilities tab. It could be because there are no amounts taken out from paychecks, or the payment is already recorded in QuickBooks.


Let’s run the Payroll Liability Balances Report to verify. Here’s how:

  1. Go to Reports at the top menu and select Employees & Payroll.
  2. Choose Payroll Liability Balances.
  3. Set the Date range. 
  4. Click Refresh to run the report.

Liability balances 1.PNG liability balances 2.PNG

 

Check out this article for more information: Run payroll liability balances report.

 

If no amount is showing for HSA on the report, create a liability adjustment to record the company contribution.

  1. Go to Employees at the top menu and select Payroll Taxes and Liabilities.
  2. Choose Adjust Payroll Liabilities.
  3. Enter the date for which you are making the adjustment in the Date field.
  4. In the Effective Date field, enter the date that you want this adjustment to affect your liability balance.
  5. Select Company on the Adjustment is for section.
  6. Under the Item Name column, choose HSA and enter Amount.
  7. Hit OK.

Once done, you should now be able to record the payment from the Pay Liabilities tab. Take a look at this article for reference: Adjust payroll liabilities


That should answer your concern for today. Let me know if this works out for you, I’m always here to help. Have a good one!

Established Member

Re: Recording HSA payment

Thank you for the information.

We made the payment for the company HSA contribution to the bank, but have not yet entered the amount on the employees' paychecks. If I understand correctly, that's why I can't enter the payment. I need to wait until after I run the next payroll. Then I should be able to "pay" the payroll liabilities and enter the check. Is that correct?

Established Member

Re: Recording HSA payment

Thank you for the information.

 

We have made the payment for the company HSA contribution to the bank, but we have not yet added the HSA amount to the employees' paychecks.

 

If I understand correctly, this is why I can't yet enter the check. I need to wait until after I run the next payroll. Then I should be able to "pay" the payroll liability for the HSA. Is that correct?

Moderator

Re: Recording HSA payment

Hello DeborahK,

 

Thanks for coming back.

 

That is correct. You can't enter a check for the HSA payment because there are no paychecks with HSA contributions. What you'll need to do is to create a payroll adjustment just like recommended by Kim. 

 

For the detailed steps, I'll paste the article here once more: Adjust payroll liabilities. After adjusting, you can now pay the liabilities. 

 

Let us know if you have more questions.