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stuart_1

401k Employer Match

SOLVED
Posted By

Okay, This seems like it should be doable however I've not been able to figure it out and I've searched and can't seem to find anything either (there was one similar post in here but the answer suggested using a script which I don't think is available in the PR module, if it was, that would be exactly what I'm trying to do).  I'd like to create a Employer Contribution field for our 401k Match amount that calculates based on a formula.  Our rule is :

We match 25% of the employee deferral up to 8% of their gross wages.  So if they defer 1-8% of their wages we match 25% of that, they can defer more if they wish, however we'll only match a max of 25% of 8% of their gross wages. 

That's sounds a little confusing as I try to phrase it, but really it's pretty simple and I imagine that many companies have similar policies.  Has anyone been able to make this happen?  We're currently running a custom crystal report that calculates it and exports into Excel, which we send to our broker, but I would LOVE to have this as a static field somewhere tied to their payroll records.  Any suggestions would be appreciated, thanks!

  • 0

    Also, I forgot to add that we're running Sage 100 2014 PU4, thanks in advance who may be able to help!

  • 0 in reply to stuart_1

    You have pretty much done exactly what I have done for my clients with a crystal report.  

    Payroll being legacy, any kind of scripting option is off the table.  :(

  • 0
    verified answer

    The only way I have discovered to do this is to create a deduction code - employer contribution type -  for the match rate, then assign the deduction code to each employee at the appropriate percentage.  For example, if the employee is set up with 1% contribution, you set them up with .25% employer contribution.  For anyone at 8% or over, set them up with a match contribution of 2%.  You would only have to calculate the percentage when you set up the employee, or when they change their 401K contribution.  After that, the payroll system calculates the contribution and accrues it for you at each pay date.

  • 0 in reply to hyanaga

    @Hyanaga, that's great!  I'm not sure I'd have thought about that but it definitely will work.  There's one exception though... 

    Some employees defer a fixed amount rather than a percentage, I can setup a separate code for them that calculate 25% of the deferral unless the fixed amount is more than 8% of their gross wages (this would have to be calculated upon assigning the code, similar to the % match code), in which case they can use the % match code set at 2%.  The problem is only going to be for Hourly employee's that contribute a significant amount, which we may not currently have anyone that's going to affect, but it could cause a problem at some point. 


    I'm going to mark the answer as solved, but if you have any suggestions on those hourly, fixed deferrals, I'd love to hear them.  Thanks Again!!!!

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