Health Savings Account (HSA)

Background

A Health Savings Account would be considered a payroll deduction in AccountEdge.

Implementing a Health Savings Account

To implement an HSA:

  1. Go to Lists from the menu bar at the top of the screen
  2. Choose Payroll Categories > Deductions from the drop down menu
  3. Click the New button at the bottom of the screen
  4. Type in the Deduction name (normally something like HSA)
  5. Select a new HSA Liability account for the Linked Payable Account (if you so choose - using the Default Withholding account is acceptable.)
  6. Set the type of deduction to Equals [amount the employee is withholding] dollars per Pay Period
  7. Set the deduction limit if there should be one
  8. Click the Employee button at the bottom left
  9. Put a tick next to any employee this should be assigned to. Click okay
  10. Click on the Exempt button to indicate the appropriate Exemptions

Managing an HSA

After creating the category you will process payroll. When the payroll process is complete, there will be an HSA liability to pay.

To pay the company who is managing the HSA:

  1. Go to the Payroll module
  2. Click the Pay Liabilities button
  3. Place a check mark next to the HSA category
  4. Make the check payable to the company managing the HSA (choose the card for them)
  5. Print the check (If no check is needed, it can be marked as Already Printed, and a non-number identifier can be indicated in lieu of a check number.)