How do I set up a company match for 401(k)? Not all employees have the same match?
Control the match at the employee deduction level, whether it is a percentage or a flat amount match. When the match is based on each employee's contribution, THEN the Accumulator Code that you will use on the Deduction Code for the employer 401(k) match would be SP_401k.
When two employees elected to contribute dollar amounts instead of a percentage, the employer match did not calculate as part of payroll processing.
In this case, the 401(k) is set up with the employer match on the Deductions Code as 100% of the employee contribution. The accumulator is SP_ER401K, 401(k) Match.
This occurred because the SP_ER401K accumulator requires a percentage to match. For an employee who opts to contribute a flat dollar amount, go to the Employee Deduction Detail, and enter the exact dollar amount of the employee's contribution on the Employee Deduction Detail record for the employer match, based on a deduction marked as employer account.
How do I define non-standard hours for auto-pays for plan reporting?
For 401(k) reporting, the administrators of a particular plan want to see hours worked in addition to wages. With salaried individuals, the auto pay does not permit hours and a compensation amount. According to Organization X, forty-eight (48) out of fifty (50) 401k participants are on salary. For example, the Controller has a weekly salary, but is expected to work fifty (50) hours per week, which is a common practice at Organization X. The system assumes the salary is based upon forty (40) hours and therefore calculates what the organization considers an incorrect hourly rate to be used in the auto pay. The Payroll Manager states that she can't use the accurate amount (50 hours) and the hourly rate to meet the administrator’s expectations.
The easiest way to handle this is to set up two auto pays for each employee on "salary." Setup one Auto Pay paying regular hours, and set up another Auto Pay tracking a non-paid overtime earning. This will allow the reporting required by the administrator of the 401(k) plan.
WARNING! Verify that your organization is not in violation of FLSA or any other regulations regarding the treatment of overtime and overtime compensation.