Set up health savings account (HSA) deductions and link them to a payroll vendor

The following procedure explains how to set up health savings account (HSA) deductions and link them to a payroll vendor for payment.

Set up a vendor record for the client's HSA vendor in the

Vendors

screen, if one does not already exist.

Make sure that Payroll Agent is selected in the Vendor type
field in the Main tab.

In the Method
field, select the payment preference you'll be using.

Set up a payroll item (Deduction type) for the health savings account in the

Payroll Items

screen, if one does not already exist.

Make sure that the client's HSA vendor is selected in the Agent
dropdown list.

In the Payroll Items tab
of the

Employees

screen, make the HSA payroll item active on the employee by marking the Active
checkbox next to the HSA deduction item for that employee.

Select the ellipsis button next to the HSA deduction item to open the

Employee Payroll Item Settings dialog

to add any information, such as direct deposit allocations or limits.

This article applies to: