Using the Full Month rule, Dayforce prorates the employee or employer contribution maximum amounts based on the number of full calendar months between the election start date and the end of the plan year.
For example, the employee maximum contribution for the option “Single HSA 2016” is $3,350.00. An employee enrolls in a qualifying option with six full months left in the plan year. When this rule is applied, the maximum amount that the employee can contribute for the year is $1,675.00:
(3,350.00 / 12) * 6 = 1,675.00
The employer's maximum contribution for the same option, "Single HSA 2016", is $1,200.00, and the amount is prorated based on the same rule. Thus, the employee hired with six full months left in the plan year receives $600.00 in employer contributions.