Employees are eligible to set up an Health Savings Account (HSA) if they satisfy all federal requirements, such as participating in a High Deductible Health Plan (HDHP).
You are responsible for determining an employee's eligibility and annual maximum for HSA contributions. We don't automatically limit or enforce an annual maximum for you because plans vary widely. The maximum total annual contribution from you and your employees is their HSA plan deductible or the current IRS limit - whichever is lower. Consult your tax advisor, accountant, or insurance provider for more information.
If employees were eligible on the first day of the last month of the taxable year (December 1 for most taxpayers), they are allowed the full annual contribution (plus catch-up contribution, if 55 or older by year end), regardless of the number of months they were eligible during the year.
Still stuck?