I appreciate your prompt reply, tiffany.
In QuickBooks Online Payroll, when a pre-tax deduction amount is subtracted from an employee's paycheck, it is not given directly to the employee or taken from the company's account. Instead, it is used for tracking purposes to calculate the employee's taxable income and deductions for tax reporting.
As the responsible party, you will send the pre-tax deduction amount to the employee's HSA account, as QBO does not automatically handle this process.
In addition, you can utilize the payroll reporting features in QBO. These reports can be customized to suit your specific needs, allowing you to manage payroll taxes and monitor employee expenses effectively.
I'll be here if you need more help managing payroll or any related concerns. Have a good one!
