TRAXPayroll
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Employee Deduction - Health Savings Account

Overview

  • Health Savings Account (HSA) deductions can be deposited into an employee's HSA bank account.
  • Setup the deduction, wage, and bank account.
  • TRAXPayroll does not collect the HSA deduction from the company, so the amount needs to be added as a non-taxable wage so it can be directed to the HSA bank account. Non-taxable wages are not reported to any agencies.
  • The recurring wage is added so the employee's net pay is not reduced by the direct deposit sent to the HSA account.
  • The amount goes in as wage, out as a deduction and then sent to the HSA bank account.

Add Deduction

  1. Menu: Employee>Deduction
  2. Add Deduction.
  3. Select 'Health Savings Account' from the drop down menu.
  4. Enter the deduction information.

Add Recurring Wage

  1. Menu: Employee>Wage
  2. The deduction amount needs to be added as a recurring non-taxable wage each payroll.
  3. If the employer is contributing to the HSA, sum both the employee and employer amounts and enter the total as the recurring wage.
  4. Click Edit on the employee's wage record.
  5. Enter the per-pay-period deduction amount and select 'HSA - Deposit - Non Taxable' from the drop down menu.
  6. Click the Save button.

Add Bank Account

  1. Menu: Employee>Bank
  2. Add the HSA bank account information.
  3. If the employer is contributing to the HSA, sum both the employee and employer amounts and enter the total as the dollar amount to be sent.

Sample Pay Stub

Related Links:

Employee Deductions
Company Deductions