Good morning,

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.

Any suggestions?