Allow me to chime in for a moment, @vvicky72.
We comply with the IRS tax regulations. Since you're part of the 2% shareholders, the setup is different. Instead of creating the item as Company HSA Contribution, I suggest adding it as an employee deduction.
However, please note that the taxability of the item will depend on how you want to report this to your federal tax forms. You can either set it up as a pretax or taxable HSA.
For additional information about the supported pay types and deductions, check out the following article. It also contains detailed information about the taxability or how the items affect taxes and forms:
Supported pay types and deductions explained.
Stay in touch whenever you have additional questions about QBO. I’m here to make sure you’re taken care of. Have a great rest of the day.
