The following procedure explains how to link employees' health savings account (HSA) deductions to unique direct deposit allocations, and then make a deposit on behalf of your client's employees for their health savings accounts. Note that you can also use this procedure to handle alimony payments coming out of an employee's account to be deposited into an ex-spouse's account.

1. In the Payroll Items tab of the Setup > Employees screen, make the HSA payroll item active on the employee by marking the Active checkbox next to the HSA deduction item for that employee.
2. Click the button next to the HSA deduction item to open the Employee Payroll Item Settings dialog.
3. In the Direct Deposit section, create and save a direct deposit allocation for this payroll item by entering the appropriate direct deposit information associated with this employee's HSA account. You can, if you choose, change the status to Prenote to verify the direct deposit information.

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