on 12-26-2014 7:32 AM
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.
Poonam,
How did you fix this issue. We are facing the same problem.
thanks
zeena
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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!
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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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
Hi All,
The above is done.
Regards,
Poonam Rajput
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Hi,
Can someone please help me with the above?
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