Trying to set up an HSA tax free deduction for 2 of my employees - I got it set up but it doesn't show where to connect the deduction to an HSA account? Thanks!

I recognize the need to see the payroll accounts and where the amount goes. I'll show you the way, @knoxultimateauto. 

QuickBooks Online Payroll automatically creates default accounts where your payroll liabilities and expenses are recorded. 

Follow these steps:

1. Go to the Payroll Settings.
2. Navigate to Accounting Preferences.
3. Then, view them in the Other Liabilities and Assets.

Moreover, discover how to manage your payroll transactions and payroll settings. Visit this page for your guide: Change your accounting preferences in QuickBooks Online Payroll.

I'm also adding this article on how to track HSA contributions in QuickBooks Online: Set up a Health Savings Account (HSA) item in QuickBooks Payroll.

You can still post here for any further concerns with your payroll task. I'm always willing to help. Take care.

So - this still doesn't explain how the withheld deduction is deposited into the employee's HSA account - is that something quickbooks handles (and if so, why was I not required to enter deposit account information) - OR - is this a manual transfer I do in my quickbooks desktop program (which would seem a little odd with the system having the employer transfer funds off "books" with out any definite proof the transfer was made, thereby creating a serious liability for Quickbooks (I would imagine) as well as the employer should a cash-strapped employer not make the contributions.  Additionally, if the actual deposit is made by the employer how does Quickbooks transfer the funds back to the employer for deposit.  

Thanks!

Hello!

Did you ever get an answer to this question? I have been contributing to a company HSA and it shows at paid. But the money never comes out of my business checking and it never gets added to their paycheck. I don't know where the money went. But it says they received it and I never set up any information for it, just added it to the pay types. 

We appreciate you reaching out today, Amanda146. Let me help you manage and streamline your employee's payroll deductions and contributions.

With these payroll processes, handling HSA payments to workers must be submitted manually outside of QuickBooks Online. After setting up and submitting these payments, you'll have to record it as an expense or check in the online program to help you track the payments made to the HSA bank. To do that:

1. Go to the + New icon and select Expense or Check.
2. Set the appropriate payee, transaction date, bank account, and reference number.
3. From the Category details section, select the liability or expense account.
4. Enter the amount based on the total contributions.
5. Add any necessary details, such as pay period or employee names, in the Memo field.
6. Review all information and click Save and close to complete the transaction.

Moreover, I've included these helpful resources that you may utilize when managing other payroll deduction items and running specific payroll reports to review your business finances: 

• Set up, change, or delete employee-paid payroll deductions.
• Run payroll reports.

We'll be sure to get back into this thread and provide further help if you require additional assistance handling payroll deductions in your account, Amanda146. Just let us know in the comments below. Keep safe and have a good one!