How do employer HSA contributions work with payroll?

Unlike employer contributions to other types of fringe benefits (e.g., commuter benefits and FSAs), employer contributions to an HSA are considered taxable income paid to an employee. Zenefits will push employer contributions to synced payroll in one of two ways, depending on the payroll provider.

  • For ADP, Zenefits will not push employer contributions for HSAs. Administrators should manually add these to payroll.
  • For Gusto and Zenefits Payroll, Zenefits will push employer HSA contributions to payroll as a contribution (much like medical/dental/vision contributions).

In all cases, employer HSA contributions will show up on the HSA column of the Contributions - Expected tab of the Deductions page.

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