How To Set up Health Savings Account (HSA) Plans In QuickBooks

HSA, or Health Savings Account, is a savings account that employees can use to cover their medical expenses. Health plans that are eligible for an HSA tend to be more cost-effective, and the funds in an HSA do not expire. To establish how to record HSA contribution in QuickBooks, you must follow these steps:

Step 1: Understand HSA Qualifications

Before setting up an HSA plan, you need to consider the following points:

- Is the employee eligible?

- Are the HSA contributions pre-tax or after-tax?

- How much can both employees and employers contribute to the HSA?

It is important to review IRS Publications 969 for specific details on eligibility criteria and contribution limits.