I can guide you with setting up employer contributed HSA to paystubs and W2s, @AbbyHCU.
First, let's ensure your tax table is updated. Besides, before we set up the employer's contributions payroll items, I recommend referring to your professional tax advisor/accountant to determine the tax tracking type to be used in these items.
The tax tracking type determines how the payroll item appears on the paystubs and W2s.
Here's how to create a contribution HSA payroll item:
- From the List menu, select Payroll Item List.
- Click the Payroll Item button, then select New.
- Select Custom Setup and click Next.
- Select Company Contribution and click Next.
- Name the item and click Next.
- Select the Liability account and Expense account and click Next.
- Set the Tax Tracking Type either HSA Co. (Nontaxable) or (Taxable), and click Next.
- In the Taxes window, click Next.
- In the Calculate based on quantity window, select Neither and click Next.
- Enter a Default rate and limit, if applicable or leave them blank, and click Finish.
I'm also adding these articles to know more about this process:
In case you need to set up employee benefits in the future, take a look at this article for details: Set up or change a retirement plan.
Please come back to this thread if you have other questions about adding employer contributed HSA. I'd be delighted to help. Take good care!
