Setting Up HSA Savings Accounts

Health Savings AccountsSystem allows for Health Savings

Accounts withholding.Withhold deduction from employeesWithhold deduction from employerAbility to create ACH submission file for

Health Savings Account withholdings

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HSA MASTER HEADERRECORD SETUP

ITC must set up processing bank master record for HSA clearing account (DIRDEP/DIRMNT).Specs from bank need to be obtained.

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HSA MASTER HEADER RECORD SETUP

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Health Savings AccountsCreate USPSDAT/DEDNAM record with

deduction type set to ANN and the Annuity Type equaling “I”.

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Health Savings Accounts

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Health Savings AccountsIf HSA tape file is desired then ACH Transfer

Type option needs to be populated on DEDNAM record.

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Health Savings AccountsUSPSDAT/DEDNAM

Added ACH Type/ID field ACH Transfer Type must begin with HSA

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Health Savings AccountsUSPSDAT/DNAMPRT

Include ACH ID number used in DIRMNT setup

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Health Savings AccountsUSPSCN/DEDSCN

Add required fields to annuity records defined as HSA ACH dep type ACH Routing # ACH Xref Code ACH Acct

These fields will only show when the annuity type is defined as “I” in DEDNAM.

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Health Savings AccountsUSPSCN/DEDSCN

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Health Savings AccountsRouting number - must be valid ACH

routing numberACH Xref Code - routing number short

codes can be usedACH Deposit Type – this will be set up as

a 22- Demand Credit record (Checking).ACH Acct - employee’s account number

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Health Savings AccountsIn PAYDED ability to create ACH submission

file for Health Savings Account withholdings.Validations:USPSDAT/DEDNAM must be set up as a Health

Savings Account (HSA)USPSCN/DEDSCN HSA annuity records must

have ACH routing and account numbers entered

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Health Savings AccountsWhen PAYDED encounters an HSA annuity

with ACH detail, the employee and board withholding amounts are placed on an ACH transfer file instead of the employee amounts being included in a check and the board amounts ignoredBoard amounts must be moved to HSA clearing

account

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Health Savings AccountsSeparate ACH file created for each HSA

deduction processedHSAACHXXX.SEQ

The ‘XXX’ represents the deduction code

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PAYDEDNOTE:PAYDED.TXT and DEDRPT.TXT totals may

differPAYDED.TXT only includes totals from checks

created. Those amounts included on ACH file will be omitted

DEDRPT.TXT includes all amounts withheld

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PAYDEDSSN can be omitted from files created

Defaults to “N”EMPLOYEE ID can replace SSN on the tape

file by using option “R”Inquire at processing bank if not certain

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PAYDED

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Health Savings AccountsAll Health Savings Account employee

contributions will be included in reports as a section 125 figure, they will not be a separate totalCALCPAY/PAYRPTQRTRPT

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Health Savings Accounts Other programs changed:

USPLOAD/DEDNAM option (Can be used to load DEDSCN)

W2CW2PROC

Any records flagged in DEDNAM with a type of “I” will get totaled and entered into box 12 with a code “W” label

The total will be employer contributions as well as section 125 annuity employee contributions as they apply

Not able to check limits on contributions20