1. Improved Health Savings Account Tracking in QuickBooks

2. How to Navigate this Presentation Summary Return to a previous slide Advance to the next slide Jump to the last slide of this presentation Jump to a specific decision point slide as indicated by button title

3. Choose the QuickBooks Version Select the button that represents the Customer’s QuickBooks Solution version to view detailed instructions on how to create an Employer Contribution HSA item. Simple Start Customer QB Pro, Premier or Enterprise

4. Simple Start Step 1 Simple Start Customer Go to File, and select Toggle to Another Edition. Your QuickBooks installation has the ability to switch to Simple Start to assist in troubleshooting customer issues. To switch to Simple Start from your QuickBooks Premier Accountant Edition 2008 or newer:

5. Simple Start Step 2 Simple Start Customer Select Simple Start. Click Next Click Toggle. Your QuickBooks will now be Simple Start and you can assist the client in navigating.

6. Simple Start Step 3 Simple Start Customer In Simple Start, Click the Payroll Icon from the Money Out Section on the Home Screen.

7. Simple Start Step 4 Simple Start Customer Select Go to the Payroll Center to access the Payroll Center.

8. Simple Start Step 5 Simple Start Customer Click the Setup and Maintain button. Choose the View/Edit Payroll Items from the drop down menu.

9. Simple Start Step 5-D Simple Start Customer The Payroll Item List window appears. Under the Related Activities section of the screen, click Add a payroll item.

10. QB1 PPE Customer From Lists on the top menu bar, click Payroll Item List.

11. QB2 PPE Customer Click the Payroll Item button and select New.

12. QB3 SS & PPE Customer Select Custom Setup, Click Next

13. QB4 SS& PPE Customer Select Company Contribution, Click Next

14. QB5 SS & PPE Customer Name the item, Click Next.

15. QB6 SS & PPE Customer Set the Liability account and Expense account, Click Next.

16. Click to Select the Company Tax Tracking Type HSA Co. (Nontaxable) HSA Co. (Taxable)

17. How HSA Company Taxable Contributions Affect Taxes Tax or Report:Contribution Affect: Federal Withholding Tax Social Security Medicare Contribution increases wages before calculating tax FUTAContribution increases wages before calculating tax W-2Contribution included in wages reported in boxes 1, 3, and 5 Contribution is reported in Box 12 with Code W

18. Taxable Step 1 SS & PPE Customer Taxable From the drop down menu, scroll down to select the Tax Tracking Type as HSA Co. (Taxable).

19. Taxable Step 2 SS & PPE Customer Click Next. Taxable Used for company contributions to an employee’s Health Savings Account that are included in Federal taxable wages. This tax tracking type is associated with company contributions.

20. Taxable Step 3 SS & PPE Customer Taxable QuickBooks automatically selects the taxes (as indicated by check marks) that are almost always affected by this payroll item. On the Taxes Screen, Click Next.

21. How HSA Company Nontaxable Contributions Affect Taxes Tax or Report:Contribution Affect: Federal Withholding Tax Social Security Medicare Contribution does NOT increase wages before calculating tax FUTAContribution does NOT increase wages before calculating tax W-2Contribution is NOT included in wages reported in boxes 1, 3, and 5 Contribution is reported in Box 12 with Code W

22. Nontaxable Step 1 SS & PPE Customer From the drop down menu, scroll down to select the Tax Tracking Type as HSA Co. (Nontaxable). Nontaxable

23. Nontaxable Step 2 SS & PPE Customer Nontaxable Used for company contributions to an employee’s Health Savings Account that are exempt from Federal taxable wages. Click Next.

24. Nontaxable Step 3 QB7C SS & PPE Customer Nontaxable QuickBooks automatically selects the taxes (as indicated by check marks) that are almost always affected by this payroll item. On the Taxes screen, click Next.

25. Step 4 SS & PPE Customer On the Calculate based on quantity screen, select Neither. Click Next.

26. Step 5 SS & PPE Customer Enter a Default rate and limit, if applicable. Otherwise, leave the default rate and limit fields blank and enter the rate and annual limit in the individual employee’s Payroll & Compensation Information window. Click Finish. Back To Select Company Tax Tracking Type Back To Select QuickBooks Version Summary

27. A Payroll item set up with the HSA Company (Taxable or Nontaxable) Tax Tracking Type will support employer contributions associated to an employee and will automatically flow the contribution to the employee’s Form W2 in box 12 with code W. Additional Feature Information: For additional information on the new HSA feature/functionality, please search using the Hive. You may exit the presentation by clicking on the in the right hand corner of this window. ALL components must be completed in order to receive credit.