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Deferred Comp Plan Codes Table

Deferred Comp Plan Code

Fields on the Deferred Compensation Plan Codes Table

Code (required). A code of ten characters or less with no spaces or special characters. Use the same code as is called by the payroll accumulator processing codes and stored procedures that the plan will be using.
Description (required). Enter a description of thirty characters or less for the code.
Active? An active code has the Active checkbox selected, making the code available and keeping the code in effect as a valid choice. Inactivating any code can result in records with the code selected having orphaned data.

Deferral Limit Information

Verify that the limits for the Deferral Contributions, Total Contributions, Deferral Compensation, and Max (Employer) Percent Match, comply with the Federal tax guidelines. If not, edit and assign the limits according to Federal guidelines.

Deferral Contributions. The total annual employee contribution allowed for this deferred compensation plan code. Enter the limit for how much the employee can contribute per year in the Deferral Contributions field. This field will limit how much the employee can contribute.

For most deferred compensation plans, the limit for Deferral Contributions is determined by regulatory guidelines and changes annually.

For an employer-only pension plan without employee contributions, enter 0.

Total Contributions. The total employee and employer contributions allowed. Add together the amount that any employee can contribute with the maximum amount that the employer may contribute, and enter that amount in the Total Contributions field.
Deferral Compensation. Optionally, you can enter the maximum earnings that the plan is calculated against in the Deferral Compensation field. The Deferral Compensation entry will not impact any calculations when standard system payroll accumulators are used. A custom accumulator may be developed to include this limit for a particular deduction.
Max (Employer) Percent Match. The maximum employer match. If there is a maximum percentage to match, enter it as a whole number in the Max Percent to Match field. For instance, 100% would be entered as 100.00. This field will limit the percentage that the employer will match.
W-2 Retirement Plan? If this code will be used for a plan or deduction that complies with the Federal specifications for a qualified retirement plan, select the W-2 Retirement Plan checkbox. For year-end, the W-2 Retirement Plan indicator determines if a deferred compensation is an eligible retirement plan.

Note: When a deferred compensation plan is selected on a Deduction Code, the limits from the Deferred Comp Plans Code transfer to all associated Employee Deduction Detail records, and payroll processing updates the adjusted limit per employee.