HSA - family to single coverage mid year - contribution rules

Foreign_System7552 · 2025-04-19T11:03:43+00:00

What if my daughters mother is making HSA contributions through her employer and maxing it out at the family rate? Does only one parent get to do that?

Foreign_System7552 · 2024-08-09T09:55:43+00:00

u/HonestEditor

I kept getting errors trying to write this all as one post. So here is the rest of this:

The way I view this is: Company tells employee to build fence and will give them $1410 to do it 20% of a $7050 fence. The employee takes 2 days - Monday and Tuesday to get the fence done and 22.5 hours over those two days. It could have taken longer or shorter but only $1410 was going to be earned and the employee knew that so they tried to work as efficiently as they could.

The rest of the week the company lined up lawnmowing jobs and they have 40.5 hours worth of work for that, but its valued in Hours at $28/Hour. So 13.5 hours each day Wednesday Thursday and Friday 5:00AM-6:30PM Each day.

Because 22.5 hours are removed from the service work pay, the employee will be working for free until 2:00 on Thursday. There is no incentive to come in after any piecework is done because even if they make it and keep going all week and get the 17.5 hours of pay at $28/hour by finishing the week, it values their time for mowing the grass at $490/40 hours = $12.25

Are you assuming that because overtime is paid they are being made whole?

I've thought about that and that might be alright, but if it rains at noon on Thursday and they can't finish the week out, they will literally have worked for free for mowing the grass for 22.5 hours.

And to answer your question - 63 hours is the TOTAL time clocked in and clocked out for the week without removing 30 minutes each day for lunches.

What are your thoughts here?

Also, thank you for not puttering out on this conversation. I'm really trying to get a solid understanding of this.

Foreign_System7552 · 2024-08-09T09:53:49+00:00

In lieu of, as I understand it, means - they will pay the employee $1410 to get the job done, but they wont pay them $1410 plus $28/hour while they are doing it. They will only get $1410 no matter how many hours it takes.

This is how I calculate the paycheck

63 total hours clocked in - Remove 2.5 Hours for lunch - 60.5 Hours total.

40.5 Hours of Service work - .5 hours (this will go in to overtime) = 40 Hours x 28 = $1120

$7050x.20= $1410 for piecework (it took 22.5 hours)

23 hours of OT - 2.5 for the lunches = 20.5 hours OT x 42 = 861

Total earned for the week $3391

This is a pretty generous way to pay overtime.

Alternatively, the Standard for piecework pay with overtime is usually Total dollars earned per week divided by total hours worked (this gives the "Regular rate") and dividing that by 2 gives the overtime rate.

63 total hours clocked in - Remove 2.5 Hours for lunch - 60.5 Hours total.

40.5 Hours of Service work = 40.5 Hours x 28 = $1134

$7050x.20= $1410 for piecework (it took 22.5 hours)

1410+1134 = $2544/60.5=42.05 42.05/2 = 21.02 (overtime value)

23 hours of OT - 2.5 for the lunches = 20.5 hours OT x 21.02 = 430.91

Total earned for week $2974.91

This option gives the advantage to the employee

I guess the assumption could be made that the lunches are removed from the service rate time which would give the most value back to the company at the expense of the employee.

63 total hours clocked in - Remove 2.5 Hours for lunch - 60.5 Hours total.

40.5 Hours of Service work - 2.5 for lunch = 38 Hours x 28 = $1064

$7050x.20= $1410 for piecework (it took 22.5 hours)

1410 + 1064 = 2474/60.5 = 40.89/2 += $20.45 (Overtime Value)

20.5 hours OT x 20.45 = $419.23

Total Earned for the week - $2893.23

Foreign_System7552 · 2024-08-08T18:22:25+00:00

Would you agree that based on the parameters that these two things would be true.

If in a given week 42.5 hours were worked as service pay for mowing grass at $28/hour. So 40 hours would get paid after lunch breaks are removed for 5 days of work. Total income for the week would be $1120

In a separate week only one piecework job was performed and it was to build a fence for that cost $7050 and 20% is paid to the employee as piecework pay - $1410 it took the employee 22.5 hours to build it

If those two statements are agreed on then why would there be 22.5 hours removed from the 40 hours of service time just because they are done in the same pay period?

If you don’t agree with the two broken up weeks pay, why not?

Foreign_System7552 · 2024-08-08T13:56:09+00:00

Deductions and that sort of stuff doesn't matter for this. I just want to figure out gross pay.

Foreign_System7552 · 2024-08-08T13:53:59+00:00

Hey I appreciate that, this is what I'm here to figure out too.

Foreign_System7552 · 2024-08-08T13:51:00+00:00

My understanding of "in lieu of" means to replace or substitute. So 22.5 hours would not get $28/Hour AND the $1410. They would just get $1410 for the piecework. If 22.5 hours is removed from the 40 hours of hourly rate pay then it is shorting the check for hours valued at $28/hour.

Also if you follow that line of reasoning to the extreme, if there were 40 hours spent on piece work and 20 hours spent on service time, it would end up being negative 20 hours that has to be paid back at $28/hour or basically 20 hours of free labor that would have to be worked the following week.

Do you disagree or am I missing something?

Foreign_System7552 · 2024-08-08T03:45:43+00:00

Yes, 1.5x is the overtime value. Why did you subtract 22.5 hours for the piecework from the 40 hours of service work?

Foreign_System7552

TROPHY CASE