Correcting Missed HSA Contributions

By Brian Gilmore | Originally posted on Newfront

Question: How can employers correct missed HSA contributions?

Short Answer: Employers can make a deposit for a missed HSA contribution through the tax filing deadline (typically April 15) of the following year without the need to correct the employee’s Form W-2. After that date, employers have to consider the best approach based on all the facts and circumstances of the situation.

Missed Employer HSA Contribution: Current Year

Where an employer discovers that it missed funding an HSA contribution for an employee in the current year, the employer can simply make the missed contribution to the employee’s HSA upon discovery of the error. These mistakes frequently occur because of a payroll or benefits administration system error.