A Health Savings Account is a special kind of medical expense savings account, created by the federal Medicare Prescription Drug, Improvement, and Modernization Act of 2003. An HSA allows an individual who is covered by a high-deductible health insurance plan to put aside money for medical expenses.
Contributions made to an employee's HSA by an employer do not count as part of the employee's gross income. Instead, they are treated as employer-provided coverage for medical expenses. As such, these contributions are not subject to withholding from wages for income tax, and they are not subject to FICA, FUTA, Medicare or Railroad Retirement tax.
For more information about HSAs, consult your tax advisor or benefits professional.
If this solution does not resolve the issue, you can read discussions and post messages and questions relating to your issue on the Intuit QuickBooks Community site for free, or you can contact a technical support agent for additional guidance. Fees may apply.
Tracking HSA contributions made by the employer
You can set up a payroll item in QuickBooks to track employer contributions to an employee's HSA and report them on the employee's W-2.
To set up an HSA payroll item:
Employer-contributed HSA information on the W-2:
Tracking HSA contributions made by the employee
You can set up a payroll item in QuickBooks to track employee contributions to their HSA.
Employee-contributed HSA information on the W-2
Employee HSA contributions do appear on the W-2 only if the tax tracking seleted is for HSA Emp. (Pretax).
The amount will appear in box 12 with code W.
Finding out how much an employee has contributed to their HSA
To find out how much money an employee has contributed to their HSA, run a Payroll Item Detail report and filter the report so that it only shows transactions for the payroll item you set up to track employees' HSA contributions.