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I am looking for best practice to setup an employeer contribution to employee HSA account.
My first thought is to setup a pay code for the HSA contribution making transaction entry required. Then setting up a deduction code for the HSA making it transaction required, since this is only happening once a year. Then link the deduction in DD setup and configuring the employee DD setup with a deduction code link to the deduction code setup for the HSA.
So once a year, the payroll clerk will add the paycode and deduction code to a payroll batch. The employee gets paid but it is deducted from net earnings and deposited into their HSA account.
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