To ensure proper integration between Core HR and Sage 300 for HSA direct deposits, you must set up an appropriate benefit deduction in Sage 300 and a direct deposit in Core HR.
While we have provided some information for Sage 300, any further assistance for Sage 300 should be directed to Sage and their resources.
In Sage 300
To use an HSA in Sage 300 CRE:
- Create a Benefit deduction (Normal Type – 1) for an HSA. This is where the employee elects how much they want taken out of their paycheck, usually pre-tax, and deposited/sent to their HSA account – formula calculating off of #2.
- In Arcoro, that would be set as the Alt 1 code in benefit enrollment, with the amount sent through for the elected amount. Would match expected results with benefit deductions when using benefits enrollment.
- Create an HSA Direct Deposit account (Direct Deposit Type – 2) to send the employee's elected HSA amount per pay cycle.
- Create a Deduction (Normal Type – 1) for an HSA with a formula calculated from #2
| Deduction ID | Deduction Type | Calc | Formula | Before employee/ employer taxes | Employee Deduct Record |
|---|---|---|---|---|---|
| H1 | Direct Deposit | Formula | LOOKUP(Amount [PR Check Deduct], Employee [PR Check], Period End Date [PR Check], Check Sequence [PR Check], "H2") | N?A | Auto |
| H2 | Normal | Flat Amount | Yes, as appropriate | In the employee setup enter the desired deduction amount and select Auto. NOTE: Flat Amount deductions will only process on First Sequence checks. | |
| H3 | Normal | Formula | LOOKUP(Amount [PR Check Deduct], Employee [PR Check], Period End Date [PR Check], Check Sequence [PR Check], "H2") * -1 | No | Auto |
Note: If using the Extended stub check format in Payroll, exclude the H1 and H3 deductions from the check format. The net result is that H1 creates the direct deposit amount while H2 and H3 cancel each other out, but H2 reduces taxable income.
If the deduct has a limit set that limit on the H2 deduct. Since the H1 and H3 are calculating based on the H2 for each check they will also stop at the limit so there is no need to set a limit on the Employee Deduct for H1 and H3.
In Core HR
As any unmatched direct deposit will be made inactive, a direct deposit account must be made for the HSA accounts to sync properly. When setting up the direct deposit account for an employee, it should include:
- Routing Number (will auto-populate bank name)
- Account Number
- Deposit Type - Flat Amount
- Amount - 1
- Start Date
- Earning Deduction Code - Should be your HSA deduction ID that is created in Sage.
- Override Prenote - Yes
After Syncing
After the HSA data has synced from Core HR to Sage 300, it will appear like so: