Revised: 4/2021
To begin employee setup, a code must be created in the deduction/benefit master for the HSA (Health Savings Account) benefit.
1. Select Human Resources
2. Select Human Resources Control Center
3. Select Deductions & Benefits Master
4. Select “Add”
5. Enter Code: You can use alpha or numeric to set up the code
6. Enter Description of HSA
7. Select Deduction or Benefit
8. Select Vendor from the drop down selection
a. If Vendor is not listed, you will need to set up the Vendor in Master File Vertical entry view. See below link for detailed steps on adding a new Vendor: http://help.schooloffice.com/FinanceHelp/#!Documents/vendorbasicfields.htm
9. Update Shelter/Special Purpose selections, as needed
a. Transfer Option: Enter “NOCHK”, this will turn of the automation of payroll liability checks to be issued: See below link for additional information on this process: http://help.schooloffice.com/FinanceHelp/#!Documents/transferoptionchecktobeissuedornocheckwhenpayrollliabilitiesaret1.htm
10. Update W2 & State Reporting Information, as needed
11. Expense object for Benefit: Complete this selection, if setup is a Benefit
12. Liability Classification: Enter payroll cash liability account
a. If the state account number for Payroll Cash account has an additional entry in another dimension field, you will need to enter that in the “Liability Override” field for that dimension.
Example: Payroll Cash state account number is 10-8101-001. The 001 is in the Optional field. The HSA code would need a 8101 in the Account Class field and a 001 in the Optional field.
13. Select “Save”
Assign HSA Code to Employee
14. Select Employee Deductions & Benefits
15. Under Un-Assigned Employees: Select employees with HSA code
16. Select “Add New”
17. Confirm Messages from webpage, Select Ok
18. The employees selected will now be listed under Assigned and Active
19. Update Amount or Percent for HSA code
20. Select Save
21. Print Employee Report for verification, as needed
Setup HSA direct deposit
1. Select Human Resources.
2. Select Add Change Employee Information
3. Select Employee
4. Check “Direct Deposit”
5. Select “Add”
a. Bank Routing Number: enter the Bank Routing number provided by the employee’s HSA provider.
b. Bank Account Number: enter the employee’s account number used by their HSA provider.
c. Base Account YN: When you have more than one record, this determines which account is the main account.
d. Checking/Savings Code (22/32): Select “32”
e. Per or Amount: do not enter anything in this field. It will be filled by the program.
f. Always Mail Voucher (YN): Entering a Y will allow the employee to always have their voucher mailed to them regardless whether they have a login to the employee portal or are having it emailed to them.
g. Email Voucher (YN): Enter a Y or N if you wish for this voucher to be emailed to the employee
h. Activity Source: enter HSA
i. Deduct Code: from the drop down select the Deduction Code set up for HSA
6. Select Save
NOTE: The employee must have the balance of their check deposited to a regular checking or savings account.
7. This process will create an additional direct deposit record for the employee. The other direct deposit record should be setup with a .99 in the Per or Amount field.
8. Select Save
NOTE on how the HSA is
processed through payroll:
When the payroll is computed it will deduct the amount from the employee. This amount will be included on the Direct Deposit report, which will make it higher than the actual total Direct Deposit amount by the amount of the HSA.
The program will create debit/credit entries for the HSA on the Payroll liability report (since “NOCHK” was placed in the transfer option field, the entries will not appear on the Accounts Payable entry view when payroll liabilities are transferred) and cash is credited by the HSA posting on the Payroll Transaction report.