| | How do I set up an HSA deduction as a direct deposit? |
| Resolution | Set up three deductions You can't set up direct deposit deductions as being exempt from taxes. To have a pretax deduction that's also a direct deposit, set up each of the following Deduction IDs. Refer to the Related Solutions below for information on deduction and formula setup. - Set up the formulas outlined in the table below.
- Set up the deductions outlined in the table below.
- Attach the formula to the corresponding deduction.
| Deduction ID | Deduction Type | Calculation Method | Formula | Before employee/employer taxes | Employee Deduct Record | | HSA1 | Normal | Flat Amount | | Yes, as appropriate | In the employee setup, enter the desired deduction amount and select Auto. Flat Amount deductions will only process on First Sequence checks. | | HSA2 | Normal | Formula | HSA2 FORMULA: LOOKUP(Amount[PR Check Deduct],Employee[PR Check],Period End Date[PR Check],Check Sequence[PR Check],"HSA1)*-1 |
No | Auto | | HSA3 | Direct Deposit | Formula | HSA3 FORMULA: LOOKUP(Amount [PR Check Deduct], Employee [PR Check], Period End Date [PR Check], Check Sequence [PR Check], "HSA1") | No | Auto | Information - HSA1 Deduction is the Pre-Tax HSA Deduction. Don't change the order of the deduction IDs. The order of processing will process this deduction first.
- HSA2 and HSA3 Deductions are "looking" at the amount for the HSA1 deduction using formulas.
- HSA1 will be a positive amount and HSA2 will be a negative amount. HSA3 is the Direct Deposit deduction.
- Direct Deposit Deductions can't be Pre-Tax Deductions.
- General Ledger is the only application these deductions will post to.
- If using the Extended stub check format in Payroll, exclude the HSA2 and HSA3 deductions from the check format. The net result is that HSA1 creates the pretax deduction amount while HSA2 and HSA3 don't.
- If the deduct has a limit, set that limit on the HSA1 deduction. Since the HSA2 and HSA3 calculate based on the HSA1 for each check, they'll also stop at the limit. There's no need to set a limit on the Employee Deduct for HSA2 and HSA3.
 NOTE: You can set up supplemental Insurance plans such as AFLAC with this same method.
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