This tutorial shows how to set up a Health Savings Account (HSA) Deduction
inside Payroll Mate® software.
A Health Savings Account (HSA) is a tax-exempt trust or custodial account you set up with a qualified
HSA trustee to pay or reimburse certain medical expenses you incur.
You must be an eligible individual to qualify for an HSA.
https://www.irs.gov/pub/irs-pdf/p969.pdf
Summary of Steps
This is just a summary; please click “Download Tutorial” for detailed instructions with screenshots.
- Click → Company from shortcuts
- Click → Deduction Categories
- Click → Add
- Enter Title, Abbreviation, Select Calculation (Fixed is the general method) and Paid by
- Enter Default amount (can modify at employee level) and Cutoff as applicable (Note: There is generally a yearly maximum allowed for this type of deduction)
- Checkmark the W2 Options as applicable
- Review/Edit Tax Exemptions as needed (Note: This tutorial assumes that the HSA payroll item is NOT exempt from any taxes)
- Click → OK
You will apply the Medical FSA deduction(s) to each employee as needed
- Click → Employees from shortcuts
- Select the employee to edit
- Click → Edit
- The Modify Employee Wizard will open, Click → Next until you reach the Deductions page
- Checkmark to select Health Savings HSA and enter deduction amount
- Click → Next until you reach the end of the wizard
- Click → Finish
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