 NOTE: These settings below may vary depending on the plan requirements. Contact your Plan Administrator to verify the setup for your plan
Define a deduction - Select Payroll, Utilities, Maintain Deductions.
- Create a new deduction for your HSA or Cafeteria plan.
- Use the following suggestions.
- CALCULATION METHOD: Fixed Amount Per Pay Period
- CATEGORY: Individual (to allow each employee to specify a different percentage)
- CREDIT ACCOUNT: Specify the liability account defined for cafeteria deductions
- LIMIT: Specify the annual limit, if any, and the Active period
- Verify with your tax advisor for specific tax requirements for your plan
- TAX CATEGORY: None
- W-2, PENSION PLAN: Verify with a tax advisor
- W-2, BOX NUMBER: Verify with a tax advisor
- W-2, BOX ID: Verify with a tax advisor
Assign the deduction to employees - Open Payroll, Employees, Maintain Employees, Deductions.
- Activate the deduction for each employee, specifying the correct amounts.
Issue the reimbursement check with an Instant Check (CM, Checks, Instant Checks) debiting the Credit account used for the Deduction. When the employee applies for reimbursement, don’t process the check in Payroll. - Process the regular Payroll check (which will be less the deduction) as normal
- Enter the instant check in the amount of the receipts turned in by the employee
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