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Former Member

HSA Contribution proration 2015

Hi Friends,

I want to know the deduction priority for an ER and EE contribution towards HSA Plan (Employee only) in order to reach the max limit of $3350 for 2015.

For example: in order to check the limits I gave $10000 as a deduction towards HSA (EE only) in IT0169 and Employer pays a flat dollar amount 5.77 every pay period.

Now the constant table has a limit of $3350 (2015) for both EE & ER maximum contribution (Variant HSASL).

When I run simulation for this pay period system stops @ $3350 as expected. Below is deductions for an EE & ER on a paycheck:

EE Contributes- $3348.07

ER Contributes- $1.93 instead of $5.77

Now My question is on what basis SAP prorates the amount for EE & ER contribution. I am not able to understand this since I do not find any maximum amount config for EE contribution as well in SPRO.

Please help me with the above.

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4 Answers

  • Best Answer
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    Former Member
    Mar 06, 2015 at 07:27 PM

    Poonam,

    How did you fix this issue. We are facing the same problem.

    thanks

    zeena

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    • Former Member

      Hi Zeena,

       

      There is no sequence for EE and ER contribution to reach the maximum limit of $3350.

      SAP standard behavior is to
      prorate the deduction between EE and ER contribution. See the example below:

      EE Contribution= $10,000

      ER Contribution= $5.77

      Total of proposed contribution
      amount= $10005.77 (10000+5.77) for the pay period

      Prorated calculation for EE=
      10000*3350/10005.77= 3348.07

      Prorated calculation for ER=
      5.77*3350/ 10005.77  = 1.93

      Hope this helps!

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    Former Member
    Dec 28, 2014 at 01:58 PM

    Hi,

    Can someone please help me with the above?

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    Former Member
    Jan 09, 2015 at 07:46 AM

    Hi All,

    The above is done.

    Regards,

    Poonam Rajput

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    Former Member
    May 27, 2015 at 03:13 PM

    We have a similar situation where an employee is terminated and the final deduction is not happening.  I know IT167 and IT169 are used to gather the dates to determine the months worked but the limit is an annual limit so why does it pro-rate to a monthly limit on a terminated employee?  The employee is no-where close to their annual limit yet it won't take their final deduction (per our lawyers, it needs to do this) or it takes a partial deduction.

    Any help would be appreciated. 

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    • Former Member Former Member

      Okay, this will be long but here it goes.

      We have an employee that has contributed $50 a pay period up the their termination.  They had 10 pay periods of deduction totally $500.  Our company also pre-loads HSA amounts based on physicals, etc.  So for this employee we front-loaded $2250 at the first of the year, which goes against their annual limit.  On pay-period 11, the employee was terminated.  We want to take their $50 deduction (per what our lawyers state we have to take it by law).  When we run payroll, it only takes $20.83 (because it is pro-rating months worked + what we have already given (the front-load).  We need to use the annual limit and not the prorated limit which the system is using (calculation below)

      Employee A = (pay-period 10 = $500 + Company front load = $2250) = $2750 up to pay-period 10.  The annual limit for this employee is $6650.  The formula below is calculating the following and only allowing $20.83 to be deduction for pay-period 11 for his final deduction instead of the $50 he selected.

      HR_BEN_PAY_PROCESS_SAVE --> HR_BEN_US_GET_HSA_LIMIT

      months_fl = months_fl + it0167-endda+4(2) - IT0167-begda+4(2) + 1   --   (this equals 05 for this employee)

      sum_contr_im = (const_has_fl * months_fl/12) + (const_has_sl * months_sl/12)   --  (this equals $2770.83 for this employee)

      This is saying that the max this employee can contribute up to their term date is 2770.83.  The employee has given $2750 already and needs to give another $50, but the system stops it to the $2770.83 calculated limit (instead of using the annual limit of $6650) and only takes the $20.83 amount.

      We need the system to use the annual limit and not a pro-rated monthly limit.

      Any ideas?

      Thanks Angela