HSA Deduction for Employer Paid Contribution

[tccpg289]

I am entering information off of the W-2 and there is an HSA deduction.

However, the HSA deduction is not appearing as an adjustment to income, thus it is not reducing income.

It does not appear to be reducing Box 1 of the W-2 either.

How is this correctly handled in ProSeries?

[rbynaker]

No deduction, it's already pre-tax in the W-2.  You can get the last paystub of the year if you'd like to verify.

[dd4vols]

it has already reduced income, if the  employee contributed any.  Think S125 plan type treatment. The code W is for employer contributions. It should flow to the Form 8889, where you indicate single or family in a couple places, and it should clear the Form 5329 red alert also.  be on the lookout for a 1099-SA also

[tccpg289]

I am comparing Box 5 to Box 1 of the W-2, subtracting out Box 12 amounts. And I do not see this amount be reduced from Box 5 to Box 1.

In other words, if Box 5 was $100, and the HSA in Box 12 was $6, shouldn't I expect Box 1 to be $94?

[jeffmcpa2010]

I am pretty sure The W code has already reduced all 3 of box 1,3 and 5 on the W-2 that's why you cant get it to reconcile.

[qbteachmt]

"In other words, if Box 5 was $100, and the HSA in Box 12 was $6, shouldn't I expect Box 1 to be $94?"

You stated it was Employer paid.

[qbteachmt]

Maybe this helps: "and there is an HSA deduction"

It's called contribution and not like pre-tax/post-tax Deductions. Both the employer and the employee amounts are lumped together and that is Box 12 code W.

[tccpg289]

Does Box 12 code W indicate it was completely paid by the employer?

[rbynaker]

If you're lucky you can flip over the W-2 and find the box descriptions (it's hit or miss these days):

Box 12 Code W might say:

Employer contributions (including amounts the employee elected to
contribute using a section 125 (cafeteria) plan) to your health savings
account. Report on Form 8889, Health Savings Accounts (HSAs).

[qbteachmt]

"Does Box 12 code W indicate it was completely paid by the employer?" I provided:

"Both the employer and the employee amounts are lumped together and that is Box 12 code W."

Just enter the W2 as you see it. Unless he/she/they also made an HSA contribution outside of Payroll, of course. You don't enter the payroll one in two places. These are difference provisions.