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.

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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!

• Former Member
Dec 28, 2014 at 01:58 PM

Hi,

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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