Hello there, McBeng. I'm here to share details on how to resolve this HSA concern in QuickBooks Online Payroll.
To rectify the situation where an employee's HSA contribution was deducted from their paycheck despite them not wanting to contribute, you can reimburse the employee and clear the payroll liabilities account.
Before doing so, determine the exact amount that was deducted from the employee's paycheck for the unauthorized HSA contribution. After that, follow these steps to create a reimbursement item.
- Go to Employees, select Manage Payroll Items.
- Select New Payroll Item.
- Select Custom Setup, then select Next.
- Select Addition, then select Next.
- Enter the name of the Reimbursement item. Select Next.
- Select an expense account for tracking this item.
- Set the Tax Tracking type to None. Then select Next.
- Under Taxes, none should be selected. Select Next.
- For amounts paid per mile/kilometer, select the Based on Quantity checkbox. Then select Next.
- Choose to calculate on Net Pay. Then select Next.
- Enter a Default Rate. Then select Finish.
After that, include the repayment pay type once you run a new paycheck then, communicate with the employee to inform them of the situation and ensure they are aware of the refund process.
Furthermore, it is important to select the exact expense account for the newly created reimbursement pay type.
Here's how:
- Go to Employees, select Manage Payroll Items then select View/Edit Payroll Item List.
- Open the payroll item you’d like to review.
- Select Next until you get to the Expense account.
- Review or make changes, then select Next until you can select Finish.
As for your liability adjustment, you can follow the instructions in this article to fix them: Adjust payroll liabilities in QuickBooks Desktop Payroll.
Additionally, if you need to adjust a previously filed tax form or payment, get assistance by contacting our QuickBooks Desktop Payroll support team.
By following these steps, you can effectively reimburse the employee for the unauthorized HSA contribution, clear your payroll liabilities account, and prevent the recurrence of similar issues in the future.
