How do I Add a Health Savings Account (HSA) Benefit?
Last modified 6/18/2020 8:22:01 AM EST | Added by Paywow Team

Applicable To
Complete Payroll Contractor Pay Employees Contractors

HSA is a tax-advantaged medical savings plan available for taxpayers. With this plan, funds that the employee and employer contribute toward this plan will not be subject to federal tax. 

Here's how to set up an HSA benefit for employees:

  1. Go to Benefits and click Set Up New Benefit.
  2. Select Health Savings Account (pre-tax) under Health and Life.
  3. On the Benefit Details page, 
    1. Enter Benefit Name and Annual Maximum Contribution.
    2. Select Contribution Mode as By Percentage or Fixed Amount and enter your contribution.
    3. Click Save & Continue.
  4. On the Select Employees page, 
    1. Select Employees to add to the Benefit Plan.
    2. Click Save & Continue.
  5. On the Employee contribution page,
    1. Enter Contribution Type, Catch-Up Limit, Employee Maximum Contribution, and Prior Contribution details.
    2. Select Employee Contribution as % (Percentage) or $ (Dollar) and enter the contribution amount per pay period.
    3. Click Save & Continue.

The added HSA will be listed under the Benefits menu for enrolled employees. The deduction will occur during the Deductions and Reimbursement step when running payroll.

Both the employee and the employer's contribution to the HSA will be reflected on the employee's pay stub under pre-tax deductions and contributions.

To learn how to add a Flexible Spending Account (FSA) benefit, click here

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