Excess Contributions to HSAs

[Guest Indylaw]

Question: What can be done by an employer to correct excess contributions made through a cafeteria plan to employees' HSAs? If not "corrected" what is the penalty to the 125 plan, if any?

My understanding is that the employer can't recoup any $ from the employees' HSA accounts. I understand the implications for the individuals and they need to remove any excess contributions from their HSA accounts and include the excess contribution amount + income as income by April 15 (or applicable tax filing deadline) or be subject to the penalty, but what I am worried about are the implications to the 125 plan, if any. So, please only comment on that aspect. Thanks!