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HSA set up with direct deposit

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Bekki
New Member
Posts: 4
New Member
6/11/2014 5:03 PM
    We will be implementing medical plans that have HSA's for the first time effective 1/1/15.  How have others set the HSA piece up?  I've seen some set them up under the HL code and others set them up under RS code.  Which is the best?  Any information would be appreciate.

    Also, our vendor is requiring the money to be set up via direct deposit.  So the employee will have to go set up a bank account and we will send the HSA to that account?  Where can we set up the direct deposit information?  If we set it up on PR12 employees would be able to change the amounts via ESS direct deposit and they shouldn't be able to since it's part of the benefit.

    Any ideas or suggestions?
    Kelly H
    Veteran Member
    Posts: 167
    Veteran Member
    7/1/2014 11:28 AM
      Our HSA is set up as an RS plan. Our vendor requires the employee to open an account with them. We receive a weekly list of new accounts for employees and we set up the PR12 for them, but we use a begin and start date equal to the date the PR12 is set up. Then the employee doesnt see the option on ESS. If an employee is enrolled in the HSA but hasnt set up an account, we put in a default account number. This is the same number for everyone who doenst have an account set up.

      Then we run a custom report in Lawson that pulls their actual HSA deduction taken from their check via the RS plan set up and PR14 set up. And it grabs the account number from the closed PR12. I was not involved in the set up of that custom report, but we do indicate "HSA" as the payment description and a distribution order of 99 to identify the HSA account on the PR12.

      The only issue we have had is an employee had an actual bank account at the vendor bank. When the employee set up their direct deposit they put in the wrong bank account number and used their HSA bank account number rather than their actual checking account number. But that could have been done even if we did not set up the PR12 for HSA. It wasn't an option for her, she had to actually enter the wrong account number.
      Pamela Brattleaf
      New Member
      Posts: 1
      New Member
      1/8/2015 2:20 PM

        We just setup HSA for the first time and our bank also is requiring the ACH setup as well. However, when we ran payroll the HSA employee contribution amount deducted just fine but the ACH to that specific account subtracted from net again. So let's say the Net income is $1000 and the HSA deduction is $50, the HSA ACH account gets the $50 but the Net income for regular checking is $950 rather than the $1000 which is what it should be because the HSA deduction has already been subtracted to arrive at the $1000 net.  So how are you sending the HSA ACH file transactions? Is your custom program creating a tape file that is uploaded to the bank that just contains the HSA ACH accounts? 

        Any help in this matter would be greatly appreciated. Infor says they do not support it, only the HSA link to BSI, which we are applying that patch now. We are on 9.0.1.9 Windows version of Lawson Apps.