Excess HSA Contributions and associated Social Security / Medicare Tax

[GayleS03]

Two Part Question...  Scenario... overpaid HSA (employer contribution on W2) in 2019 by $2,500; Turbotax led me to include it as additional income on 1040 for 2019 AND to request the bank to distribute the amount in early 2020.  

1. Is there any obligation or method to pay the Social Security and Medicare tax that wasn't paid through my payroll checks on that excess $2,500?
2. I now have a 1099 SA for 2020 with $2,500.47 in box 1, $ .47 in box 2 (earnings on excess contribution) and Code 2 in box 3.  (All logical).  Navigating the following questions - anyone have any different thoughts? 
   • "Tell us if your excess HSA/MSA contribution was made by your employer and deducted from the wages in Box 1 of your W2."  I'm answering "NO", since the $2,500 isn't part of the 2020 W2 math. Sound right?
   • "Did you overfund your HSA in 2019?"  I am answering "NO" since I put the excess back into taxable income for the 2019 return AND withdrew it by the due date of 7/15/2020.  I'm always uncomfortable just blowing past questions because I think I know the answer.... Anyone have a thought? Agree with my "NO"?

Thanks!!

[Fred Coale]

If I understand the situation, the excess contribution was made in 2019 by your employer, then remedied in early 2020.  Assuming you made all the required income adjustments with your 2019 tax return, then answering "no" to both questions in 2020 seems logical.  (The 2020 1099-SA documents the withdrawal.)

The Social Security and Medicare question is a tough one, but if it were me, I wouldn't sweat it.  

[BillM223]

"Is there any obligation or method to pay the Social Security and Medicare tax that wasn't paid through my payroll checks on that excess $2,500?"

No. Seems like an oversight, but, no, you have no requirement to pay it back.

"Tell us if your excess HSA/MSA contribution was made by your employer and deducted from the wages in Box 1 of your W2."

What screen is asking this? Did you get a new excess contribution error message for 2020? I would not expect to see this question for a 2019 HSA excess contribution in the 2020 interview

"Did you overfund your HSA in 2019?"  I am answering "NO" since I put the excess back into taxable income for the 2019 return AND withdrew it by the due date of 7/15/2020. "

No is the correct answer, because you "cured" the excess contribution by asking for the withdrawal of the excess by the due date of the 2019 return.

@GayleS03