Employee Deduction - Health Savings Account
- 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.
- Menu: Employee>Deduction
- Add Deduction.
- Select 'Health Savings Account' from the drop down menu.
- Enter the deduction information.
Add Recurring Wage
- Menu: Employee>Wage
- The deduction amount needs to be added as a recurring non-taxable wage each payroll.
- If the employer is contributing to the HSA, sum both the employee and employer amounts and enter the total as the recurring wage.
- Click Edit on the employee's wage record.
- Enter the per-pay-period deduction amount and select 'HSA - Deposit - Non Taxable' from the drop down menu.
- Click the Save button.
Add Bank Account
- Menu: Employee>Bank
- Add the HSA bank account information.
- 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