Hello,
We had the same issue which we decided was okay, because the deduction wasn't taken. We now have a new issue where the employee was terminated one month into the new year. The employee had his deduction taken for pay period 01, but on pay period 02, a retro was triggered on him and the amount deduction in pay period 01 is trying to be refunded. We cannot go into this employees third party vendor account and take that money back to cover the refund. We also loaded the system via IT15 company amounts to go against the IRS limits.
Example, employee above was given 2500 via IT15 from the company. He is covered as EE+F so falls with-in the 6650 IRS limit for an HSA account. The employee had 159 taken out on pay period 01, then was termed. A retro was triggered for pay period 02, which re-calculated his pay period 01 amount and since the system pro-rates the HSA limit based on the number of months you worked, it is saying he was only allowed to take 554 in money when his record shows the 2500 the company gave + the 159 deduction from IT169. the system is trying to refund the 159.
We are trying to figure a way to stop the system from refunding this money since we legally cannot claim that money back from the 3rd party vendor.
Thanks
Angela