Hello, tkatke. 

Thank you for reaching out to the Community. Let me share some information about setting up QSEHRA for your employees in QuickBooks Desktop. You can set up QSEHRA in payroll using the new tax-tracing type Qual. Small ER HRA. This allows you to trace and record the number of payments and reimbursements of your employee that make available annually under a QSEHRA plan.  

To set up the new Qual. Small ER HRA tax tracking type payroll item, here's how: 

1. Click the Employees menu and select Manage Payroll Items. Then, pick New Payroll Item.
2. Select Custom Setup and click Next.
3. Select Company Contribution and click Next. Then, enter a unique name for this new payroll item, which will appear on employee pay vouchers, pay stubs, and on payroll reports (for example, "Reportable Qual. Small ER HRA" ). Click Next.
4. Leave the agency information blank. This is a tracking and reporting item only, not a true liability item.
5. Press the arrow next to the Liability account box, and choose <Add New>.
6. In the Add New Account window, select Other Expense as the Account Type and enter a new Account Name (for example, "Reportable Qual. Small ER HRA"). Click Save & Close.
7. Click the drop-down next to the Expense account box and select the account you just created. Click Next. Note: If you are creating more than one payroll item for tracking QSEHRA payments, continue to use this account for both the liability and expense accounts. Setting both the liability and expense accounts the same creates a "wash" item that shows a zero amount on your Profit & Loss statements. This allows you to track QSEHRA payments for W-2 reporting purposes without these numbers affecting your financial reports.
8. Hit Yes to ignore the warning that you have set your liability account and expense account to the same account.
9. Click the arrow for the tax tracking type, and select the new tax-tracking type Qual. Small ER HRA. Click Next.
10. Tap Next twice, then Finish to accept the default settings on the Default rate and limit page.

For detailed steps and information, you can refer to this article: Desktop Payroll: Qualified Small Employer Health Reimbursement Arrangements (QSEHRA).  

Additional, you can read through this article about report that Qualified Small Employer Health Reimbursement Arrangements (QSEHRA): Report healthcare reimbursements (QSEHRA) on W-2 forms. 

Please let me know if you have additional questions about setting up QSEHRA in QuickBooks Desktop. I'll be here to lend a hand. Stay safe!