Pay types: Company HSA Contribution

What's a company HSA contribution?

A company HSA contribution is the amount you contribute each payday to the employee's Health Savings Account (HSA).

Form W-2 Reporting — on Form W-2, your contributions to an employee's HSA are reported in Box 12 but excluded from federal wages and most state wages. If your contributions are taxable at the state or local level, we include the amount in taxable state wages.

S Corp Limitation — for shareholder-employees who own 2% or more of an S Corporation, do not select Company HSA contribution. Your contributions are taxable at the federal level and in some states.

To set up a Company HSA Contribution pay type for an employee:

1. Go to the Employees tab.
2. Click an employee's name.
3. On the employee's overview page, look for the Pay section and click Edit.
4. Scroll down to the What additional ways do you pay? section and click to select the Company HSA Contribution checkbox.
5. Optional: Enter a default amount to be paid each paycheck. You can always change the amount when you create the paycheck.
6. Click OK.

Next time you create a paycheck for the employee, the HSA pay item appears. Simply enter the amount for the pay period and our payroll service includes the HSA amount when calculating the paycheck.