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Employer-Paid HSA

Posted: Tue Oct 07, 2025 5:32 pm
by Lolbkpr
We pay our pastor $75/mo for an HSA. I have it set up as an "Employer Liability". I have to put an Expense line item in as well, so when I run payroll, it generates a $75 expense in the Pastor Medical line item.

When I pay our benefits provider (Portico), I pay this amount to them, so the payment I make to them has it listed in there as well so it will match the total of the benefits payment to them, which is an expense.

So, with the benefits bill payment and the $75 expense generated every time payroll is run, it is showing up twice on the Expense line item

I could reduce the amount of Medical on the Portico payment, but then it wouldn't match the total Portico bill.
How can I reflect in our books that we are paying this amount to Portico? It doesn't come up on the reconciliation as a separate expense. It goes straight from Payroll to showing up as an expense that cannot be reconciled in the bank account with the bill.

Re: Employer-Paid HSA

Posted: Tue Oct 07, 2025 6:45 pm
by NeilZ
Lolbkpr wrote:
Tue Oct 07, 2025 5:32 pm
We pay our pastor $75/mo for an HSA. I have it set up as an "Employer Liability". I have to put an Expense line item in as well, so when I run payroll, it generates a $75 expense in the Pastor Medical line item.

When I pay our benefits provider (Portico), I pay this amount to them, so the payment I make to them has it listed in there as well so it will match the total of the benefits payment to them, which is an expense.

So, with the benefits bill payment and the $75 expense generated every time payroll is run, it is showing up twice on the Expense line item

I could reduce the amount of Medical on the Portico payment, but then it wouldn't match the total Portico bill.
How can I reflect in our books that we are paying this amount to Portico? It doesn't come up on the reconciliation as a separate expense. It goes straight from Payroll to showing up as an expense that cannot be reconciled in the bank account with the bill.
You should have the funds going from the expense account to a liability account. When you run payroll, the funds are moved from the expense account to that liabiltiy account, then when you pay the bill, the liability account should be the listed as the debit account on the payment invoice.