Set up company contributions to a Health Savings Account (HSA)

deduction;contribution;health insurance;HSA;

1. Go here.
   (Or click the Employees tab.)
2. Click the employee's name.
3. In the Pay section, click Edit.
4. On the employee's Pay page, in the What additional ways do you pay? section, select the Company HSA Contribution checkbox (if you don't see the checkbox, click the Show all pay types link).
5. Enter the amount you contribute each payday. If you enter occasional contributions, you'll enter those on payday when you create the paycheck.
6. Click OK.

You're responsible for determining an employee's eligibility and annual maximum for HSA contributions. We do not automatically limit the annual maximum for you, because plans vary widely.

Reporting HSA-contributions on Form W-2

• On Form W-2, your contributions to an employee's HSA are reported in Box 12, but excluded from federal wages and most state wages.
• If the employee has both an employee-deducted and company-contributed HSA, Box 12 on Form W-2 shows the total of the two amounts.
• If your contributions are taxable at the state or local level, we include the amount in taxable state wages.

You may also like

• Health Savings Account (HSA): Overview
• Deductions and contributions: Setting up employee deductions for a Health Savings Account (HSA)
• Setting up company contributions to a health insurance plan

ContactUsStill stuck? Contact us