Example: Create a Deduction for Employee Contribution to a Health Savings Account (USA)

Administrator Guide

Create a deduction for employee contribution to a Health Savings Account (HSA) as a second step in calculating the cost of an HSA plan.

Create an HSA plan.

Security: Set Up: Payroll (Calculations - Payroll Specific)
domain in the Core Payroll functional area.

Access the

Create Deduction

task.

Enter these settings:

Option	Description
Name	Employee Contribution to HSA
Code	HSA-EE

Enter these settings on the

Effective Dated

tab:

Option	Description
Effective Date	Current date
Run Category Eligibility	Regular
Worker Eligibility	In 1 row: Benefits: Employee Cost (pre-tax) Exists and < > 0 Employee Enrolled in Benefit Plan Processing Primary Job
Calculation	Benefits: Employee Cost
Recalculate during Retro	Selected

Enter these settings in the

Limits

grid:

Option	Description
Value	Benefits: HSA Maximum Annual Contribution Limit (without Catch-Up Limit)
Balance Period	YTD - Current Calendar Year (based on Payment Date)
Based On	Health Savings Account (HSA) [USA]

Enter these settings on the

Non-Effective Dated

tab:

Option	Description
Groups	Federal Taxable Reduction [USA] FICA Taxable Reduction [USA] Pre-Tax Deductions State Withholding Taxable Reduction [USA] Withholding Order (All): Medical Savings Account [USA]
Benefit Plans	Select the relevant HSA plan. Create separate deductions for HSA and HSA Catch-Up, as different limits apply. When you attach more than 1 benefit plan with different limits, Workday randomly selects the plan to use, which can result in errors.

The deduction is available for use in payroll processing upon the effective date.