HSA Company Module

HSACOMPANY MODULE

Improved Health Savings Account Tracking in QuickBooks

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Summary

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Choose the QuickBooks Version Select the button that represents the Customer’s QuickBooks

Solution version to view detailed instructions on how to create an Employer Contribution HSA item.

Simple Start Customer

QB Pro, Premier or Enterprise

Simple StartStep 1

Simple Start Customer

Go to File, and select Toggle to Another Edition.

Your QuickBooks installation has the ability to switch to Simple Start to assist in troubleshooting customer issues. To switch to Simple Start from your QuickBooks Premier Accountant Edition 2008 or newer:

Simple StartStep 2

Simple Start Customer

Select Simple Start. Click Next Click Toggle.Your QuickBooks will now be Simple Start and you can assist the client in navigating.

Simple StartStep 3

Simple Start Customer

In Simple Start, Click the Payroll Icon from the Money Out Section on the Home Screen.

Simple StartStep 4

Simple Start Customer

Select Go to the Payroll Center to access the Payroll Center.

Simple StartStep 5

Simple Start Customer

Click the Setup and Maintain button.

Choose the View/Edit Payroll Items from the drop down menu.

Simple StartStep 5-D

Simple Start Customer

The Payroll Item List window appears.

Under the Related Activities section of the screen, click Add a payroll item.

QB1PPE

Customer

From Lists on the top menu bar, click Payroll Item List.

QB2PPE

Customer

Click the Payroll Item button and select New.

QB3SS & PPECustomer

Select Custom Setup, Click Next

QB4SS& PPECustomer

Select Company Contribution,Click Next

QB5SS & PPECustomer

Name the item,Click Next.

QB6SS & PPECustomer

Set the Liability account and Expense account,Click Next.

Click to Select the Company Tax Tracking Type

HSA Co. (Nontaxable)

HSA Co.(Taxable)

How HSA Company Taxable Contributions Affect Taxes

Tax or Report: Contribution Affect:

Federal Withholding TaxSocial SecurityMedicare

Contribution increases wages before calculating tax

FUTA Contribution increases wages before calculating tax

W-2 Contribution included in wages reported in boxes 1, 3, and 5

Contribution is reported in Box 12 with Code W

Taxable Step 1 SS & PPECustomer

Taxable

From the drop down menu, scroll down to select the Tax Tracking Type as HSA Co. (Taxable).

Taxable Step 2 SS & PPECustomer

Click Next.

Taxable

Used for company contributions to an employee’s Health Savings Account that are included in Federal taxable wages. This tax tracking type is associated with company contributions.

Taxable Step 3 SS & PPECustomer

Taxable

QuickBooks automatically selects the taxes (as indicated by check marks) that are almost always affected by this payroll item.

On the Taxes Screen, Click Next.

How HSA Company Nontaxable Contributions Affect Taxes

Tax or Report: Contribution Affect:

Federal Withholding TaxSocial SecurityMedicare

Contribution does NOT increase wages before calculating tax

FUTA Contribution does NOT increase wages before calculating tax

W-2 Contribution is NOT included in wages reported in boxes 1, 3, and 5

Contribution is reported in Box 12 with Code W

Nontaxable Step 1 SS & PPECustomer

From the drop down menu, scroll down to select the Tax Tracking Type as HSA Co. (Nontaxable).

Nontaxable

Nontaxable Step 2 SS & PPECustomer

Nontaxable

Used for company contributions to an employee’s Health Savings Account that are exempt from Federal taxable wages.

Click Next.

Nontaxable Step 3QB7C

SS & PPECustomer

Nontaxable

QuickBooks automatically selects the taxes (as indicated by check marks) that are almost always affected by this payroll item.

On the Taxes screen, click Next.

Step 4 SS & PPECustomer

On the Calculate based on quantity screen, select Neither.

Click Next.

Step 5 SS & PPECustomer

Enter a Default rate and limit, if applicable. Otherwise, leave the default rate and limit fields blank and enter the rate and annual limit in the individual employee’s Payroll & Compensation Information window.

Click Finish.

Back To Select Company Tax

Tracking Type

Back To Select QuickBooks

Version Summary

Summary A Payroll item set up with the HSA Company (Taxable or Nontaxable) Tax Tracking Type

will support employer contributions associated to an employee and will automatically flow the contribution to the employee’s Form W2 in box 12 with code W.

Additional Feature Information: For additional information on the new HSA feature/functionality, please search using

the Hive.

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