Health Savings Account (HSA) Deduction

Modified on Mon, Mar 11 at 8:53 AM

If the District offers Health Savings Account (HSA), we recommend the following deduction settings:

Setting Employer Contributions

If the District offers an employer match for the HSA deduction, the following settings should be used for the employer match it it occurs on a payroll-by-payroll basis. If the employer contribution is made on an annual basis, please refer to the recommended procedures at the end of the article.

Employer Contributions on a payroll-by-payroll basis

Simple Amount settings

Percentage of Gross settings

Payroll Agency Vendor Setup

The Agency Vendor MUST have the following set to EE and ER for the Payroll to Budget Posting tab to properly function:

Posting the Employer Match to Budget

After the payroll is finalized, you will have a summary of the employee and employer contributions on the deductions tab for the respective payroll:

When the payroll is posted to budget, in the Payroll Posting Summary, you will see the total of the employer share included with any other deductions that have the ER setting active for the payroll agency vendor.

In addition, the lower section of the tab will contain instructions to remind the District how to post the employer share for other deductions with the ER setting active for the payroll agency vendor. The system can not automatically interface with these purchase orders because each and every district will have different requirements / parameters for the respective purchase order.

Employer Contributions on an annual basis

If the District's employer contributions are on an annual, semi-annual or quarterly basis we recommend the District fund the employer obligation through the Budget and remit the employer contributions directly to the HSA vendor. Then, to record the transaction in SchoolFi and ensure the individual's W2 reflects the employer contribution, an Other Reported W2 must be created and posted.

Here is a sample Other Reported W2 along with the recommended settings: