Employer HSA Contribution from previous year

[JC1991]

I was enrolled in an HSA HDPD health insurance plan through my employer in the year 2022. The employer was supposed to credit $1000 to my HSA for completing some qualified medical activities.
I underwent the healthcare activities at the end of the year (Between Oct-Dec 2022) and but the employer was unable to credit the amount in my HSA account in 2022 due to processing delays. I completed the activities in time and was eligible for $1000. 
I enrolled in a PPO (Non HSA) health plan for the year 2023 through my employer. I was told by my employer that since I moved to a Non HSA plan, they can't credit my account with last year's HSA credit of $1000.
Can the employer credit my account (before the tax deadline in April 2023) with the HSA credit from last year that they missed, even though I am not in an HSA plan? If yes, what is the process?

[Opus 17]

The provision that allows you to make HSA contributions as late as October 15 of the following year, only applies to direct contributions by you. As far as I know, the employer does not have any such leeway with respect to the salary reduction agreement that they must enter in with you under section 125.  

[Edited to correct] The employer may make contributions as late as April 15 of the next year, designated for the previous year. 

And in any case, if you don’t meet the qualifications to earn the employer contribution, they don’t have to make one for you. IRS regulations require that employers treat all employees equally in order for the benefit plan to qualify for special tax treatment. The definition of what constitutes equal treatment depends on what is written in the plan documents and any employment contract you might have. For example, if the plan rules say that you will only be credited the $1000 benefit if you are actively working as of November 1, and you were on medical leave on November 1, then you don’t qualify under the plan rules.  If you can show, the employer is not following the plan rules, you could make a case to the state labor board or sue them, I suppose.

[JC1991]

Thank you for your quick reply. Please let me add some additional details to my question.

I was supposed to get $1000 from my employer as an employer contribution by the end of the year 2022 for enrolling in an HSA plan and completing certain healthcare activities, however, the processing of the credits was delayed from their end. I enrolled in a Non HSA plan with the same employer in the year 2023.

Was it/Is it possible for the employer to credit my HSA account with the previous year's HSA contribution of $1000 that they missed? I have been told that since I am no longer in an HSA plan, it is not possible now. 

However, I believe that this could have been done by filing form 8889 and an updated W2 until April 15th (Tax Deadline).
Citing the resources from IRS:

IRS Notice 2008-59, Q/A-21

Can you please provide some insights.?

[Mike9241]

maybe I'm missing something but I don't see your point. it is now July 2023. the contribution would have had to have been made by 4/17/2023

[JC1991]

I am asking this to understand the guidelines and viewpoints of CPAs and Tax consultants. 

I know its already late, but I have been chasing this credit from my employer for over 6 months. I was initially informed that I will get this credit until now, when I was told that an 'Employer can't credit an employee for previous year's employer HSA contribution since I switched from an HSA plan in 2022 to PPO Non HSA in 2023'.

Had I continued to remain in HSA plan in 2023, I could have received that credit.

I feel the employer-provided incorrect information earlier and are missing some facts/guidelines.

Since there is limited information available on such a scenario online, I am seeking your help.

[Mike9241]

The simplest thing would be for the employer to give you a bonus of $1000.   say the employer contributed  (and I'm not saying it can be done without tax issues for itself) the $1000 to your HSA. not covered by an HDHP plan for 2023 means the contribution would be an excess and would be taxed to you as ordinary income. in addition, you would pay a 6% penalty every year until withdrawn or used.  

[Opus 17]

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@JC1991 wrote:

I am asking this to understand the guidelines and viewpoints of CPAs and Tax consultants. 

I know its already late, but I have been chasing this credit from my employer for over 6 months. I was initially informed that I will get this credit until now, when I was told that an 'Employer can't credit an employee for previous year's employer HSA contribution since I switched from an HSA plan in 2022 to PPO Non HSA in 2023'.

Had I continued to remain in HSA plan in 2023, I could have received that credit.

I feel the employer-provided incorrect information earlier and are missing some facts/guidelines.

Since there is limited information available on such a scenario online, I am seeking your help.

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Your employer was allowed under the tax law, to make a contribution to your account designated for the 2022 tax year as late as April 15, 2023.  They didn't do this, and now it is too late.

The tax law does not require your employer to make this contribution.  What your employer might or might not be required to do is covered by your HR polices and employment contract, if any.  

[dmertz]

The HSA contribution deadline is the regular due date of the individual's tax return.  Only those in disaster areas in California, Alabama and Georgia have had the regular due date for the 2022 tax return changed to October 16, 2023.