Question

HSA Deductions and Direct Deposit

  • 28 November 2023
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We just switched over to Acumatica and processed our first payroll in the system. After processing, I realized an error in the HSA deduction/direct deposit where the HSA deduction is essentially being doubled up. 

In our old system, we could tie the HSA deduction to a specific HSA direct deposit account, so the amount specified in the deduction set up was automatically directed toward the account set up under the HSA direct deposit code. Acumatica apparently does not have the ability to do this, so our implementation team advised us to set up the HSA account under direct deposits, and specify the dollar amount to deposit into the account with the remainder going to the regular checking account. Unfortunately, this is actually doubling up on the HSA deduction.

For example, say an employee’s net pay was $1,000, including an HSA deduction of $25. They should actually receive $1,000 in their bank account because the HSA deduction was already factored into the calculation of their net wages. However, with the set up described above, the employee would receive $975 in their main checking account, and $25 in their HSA account. This is essentially duplicating the HSA deduction by taking another $25 out of their net pay and directing it to a different account. 

I need to be able to track the HSA deductions for tax purposes, but also pay it into employee’s HSA accounts. I thought about linking the HSA deduction to a liability bill and remitting through AP, but our employees have HSA accounts with several different financial institutions so that wouldn’t work without setting up a different HSA deduction code for each bank, which I don’t want to do. I also don’t want to have to manually create liability bills or an ACH transfer. We have 40 employees with an HSA deduction x 52 weeks of payroll, so I need a sustainable solution to this problem. Can anyone think of a work around for this?


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