Issue with HSA ER Rounding post Biweekly Rollout
Summary:
We moved from Semi Monthly payroll to Bi-Weekly payroll two years ago. since then we have a serious issue with HSA Employer Rate rounding rule.
the Employer Contribution for HSA Emp + Dependents is 900. Now if you divide 900/26 = 34.615. and it rounds to 34.62. Currently if you do the same 34.62 *26 then it is becomes YTD as 900.12 and it creates additional forms from payroll for these difference in cents.
The question from customer is that we are not the only one in Bi Weekly Payroll and HSA is IRS compliance issue. how do we apply the CAP on the IRS limit and not overshoot along with HSA Employee Contribution.
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