1. Setting Up HSA Savings Accounts

2. Health Savings Accounts System allows for Health Savings Accounts withholding. Withhold deduction from employees Withhold deduction from employer Ability to create ACH submission file for Health Savings Account withholdings 2

3. HSA MASTER HEADER RECORD SETUP  ITC must set up processing bank master record for HSA clearing account (DIRDEP/DIRMNT).  Specs from bank need to be obtained. 3

4. HSA MASTER HEADER RECORD SETUP 4

5. Health Savings Accounts Create USPSDAT/DEDNAM record with deduction type set to ANN and the Annuity Type equaling “I”. 5

6. Health Savings Accounts 6

7. If HSA tape file is desired then ACH Transfer Type option needs to be populated on DEDNAM record. 7

8. Health Savings Accounts USPSDAT/DEDNAM Added ACH Type/ID field ACH Transfer Type must begin with HSA 8

9. Health Savings Accounts USPSDAT/DNAMPRT Include ACH ID number used in DIRMNT setup 9

10. Health Savings Accounts USPSCN/DEDSCN Add required fields to annuity records defined as HSA ACH dep type ACH Routing # ACH Xref Code ACH Acct These fields will only show when the annuity type is defined as “I” in DEDNAM. 10

11. Health Savings Accounts USPSCN/DEDSCN 11

12. Health Savings Accounts Routing number - must be valid ACH routing number ACH Xref Code - routing number short codes can be used ACH Deposit Type – this will be set up as a 22- Demand Credit record (Checking). ACH Acct - employee’s account number 12

13. Health Savings Accounts In PAYDED ability to create ACH submission file for Health Savings Account withholdings. Validations: USPSDAT/DEDNAM must be set up as a Health Savings Account (HSA) USPSCN/DEDSCN HSA annuity records must have ACH routing and account numbers entered 13

14. Health Savings Accounts When PAYDED encounters an HSA annuity with ACH detail, the employee and board withholding amounts are placed on an ACH transfer file instead of the employee amounts being included in a check and the board amounts ignored Board amounts must be moved to HSA clearing account 14

15. Health Savings Accounts Separate ACH file created for each HSA deduction processed HSAACHXXX.SEQ The ‘XXX’ represents the deduction code 15

16. PAYDED NOTE: PAYDED.TXT and DEDRPT.TXT totals may differ PAYDED.TXT only includes totals from checks created. Those amounts included on ACH file will be omitted DEDRPT.TXT includes all amounts withheld 16

17. PAYDED SSN can be omitted from files created Defaults to “N” EMPLOYEE ID can replace SSN on the tape file by using option “R” Inquire at processing bank if not certain 17

18. PAYDED 18

19. Health Savings Accounts All Health Savings Account employee contributions will be included in reports as a section 125 figure, they will not be a separate total CALCPAY/PAYRPT QRTRPT 19

20. Health Savings Accounts Other programs changed: USPLOAD/DEDNAM option (Can be used to load DEDSCN) W2C W2PROC Any records flagged in DEDNAM with a type of “I” will get totaled and entered into box 12 with a code “W” label The total will be employer contributions as well as section 125 annuity employee contributions as they apply Not able to check limits on contributions 20