Testing Period/Excess Employer Contributions

[Guest D.N]

A company decides to start a HSA plan January 1, 2009. They give all of their employees a one time $1500 contribution. The employees can make contributions via salary reduction. Employee 1, age 45, will leave the job next friday. Employee 2, almost age 65, will terminate employment April, 24 2009. Employee 1 has contributed $100 each month since January and has used $700 from the HSA on qualified medical expenses, however, $200 was reimbursed to her do to an initial visit to the doctor. Employee 2 has not contributed any money to the HSA plan.

Some thoughts:

1)Both employees fail to meet the testing period from December 08-December 09' since they are leaving within a month or so. Therefore, i know Part III of Form 8889 applies.

2)How will I go about calculating what amount is part of income, going on the assumption that the employer contribution is considered an excess employer contribution under the above circumstances. I have read the instructions on Form 8889, looked at the Line 3 limitation, Employer contribution worksheet, and Line 19 and unsure what the correct amount is. If the employees withdraw the excess employer contributions before the filing date, then will line 22 need to be checked/filled out on Form 8889?

Thanks!