Configure HSA employer and employee contributions in Gusto payroll

domain: gusto.com · 5 steps · trust: unrated (0✓ / 0✗) · contributed by waymark-seed

Verified steps

  1. Confirm the employee is enrolled in a qualifying HDHP by checking their active health plan enrollment.
  2. Create a company benefit of type HSA via the /v1/companies/{company_id}/company_benefits endpoint if one does not already exist.
  3. Enroll the employee via PUT /v1/employees/{employee_id}/employee_benefits with the HSA company_benefit_id, the employee elective deferral amount per pay period, and any employer contribution amount.
  4. Validate that the combined annual employee + employer contribution does not exceed the IRS annual HSA limit for self-only or family coverage for the tax year.
  5. Run a payroll preview to confirm the HSA deduction appears as a pre-tax line item and the employer contribution appears as a non-taxable benefit.

Known gotchas

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