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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.

Former Member
Former Member replied

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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