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HSA Contribution Cross over issue

in Benefits

Summary:

The HSA contribution is deducting an extra pay period amount if the employee who already enrolled in HSA decides to waive off in the next year during open enrollment.

Content (please ensure you mask any confidential information):

Please find the current configuration below.

Payroll - Biweekly

1st payroll of 2026 - 26th Dec 2025 to 9th Jan 2026

Benefits Open enrollment effective date - 1st Jan 2026

Let's take an employee who has a 2025 HSA contribution as $5500, and he decides to waive on open enrollment.

So, for 2025 he has paid all the due on 25th Dec 2025 which is the last payroll of 2025. Then the 1st payroll starts from 26th dec onwards. Since the open enrollment will be effective from the 1st of Jan 2026 and he is covered in HSA from 26th Dec 2025 to 31st dec 2025 which comes under the 1st payroll of 2026, because of this overlap, the system is deducting the 2025 HSA per pay period amount one more time during the 1st payroll of 2026 making him overpay more than what he has elected. Basically, because of

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