Adding a Retirement Plan Profile and Deduction to an Employee

Adding a Retirement Plan Profile and Deduction to an Employee

Navigate to the employee profile you need to update.

Team > My Team > Employee Information 



Select the employee.



Retirement Plan Profile

Navigate to the Main tab and select the Profiles tab on the right side of the screen.



Navigate to the bottom of the profiles list to Retirement Plan and use the Lookup Icon to select the preferred plan.



The select Save in the top right of the screen before navigating to add the retirement deduction.

Retirement Deduction

Navigate to the Payroll tab and select Deductions




If the 401k Retirement plan was added first, the deductions that are tied to the plan will show up already in the deduction list.  This can include 401k, 401k Roth, Simple IRA, etc.  Click in to the applicable deduction to make the appropriate adjustments.



Deductions

This widget contains information related to processing the deduction in payroll. The grayed fields may not be changed on this screen. However, you do can add memo information related to the deduction or assign a specific vendor to this employee's deduction. In addition, you also can limit which pay statement types to which the deduction is applied.

Deduction: This will be grayed out since it was already selected.
Begin Date: This will be the start date of the deduction.
End Date: If there is not an anticipated end date, then leave this blank and it will auto populate to 12/31/2099.
Priority Sequence, Annual Max, and Annual Max ER is something that is determined with the deduction is first set up in the system so it's typically closed to edits.
Pay Statement Types to Apply to: If you want to limit the Pay Statement Types this deduction should apply to, use the Lookup icon to choose a Pay Statement Type list. If the option you want is not listed, you can create a new list directly from that page. If nothing is selected, then this will default to all pay statement types.
Memo: Here you can add information directly related to the deduction. Note: this is an informational box only.
Vendor: You can assign a specific vendor to this employee's deduction. Select this if your vendor is paid through payroll with either an ACH transaction or a check.



Settings

This widget contains the settings that control the employee and employer deduction contributions. You can edit and override the amounts and settings.

Additional Info: Here you can add information directly related to the deduction. Note: this is an informational box only.
Amount Type: Choose how the funds are calculated, typically either a flat dollar amount or a percentage of earnings.
Amount: Enter the dollar amount or the percentage.
Minimum: Only use this if you wish to establish a minimum amount for the deduction. Enter an amount in the first box and then select the type of amount to apply to the amount entered. The same calculations available for the previous fields are available here, in addition to N/A.
Maximum: Use this to establish a Maximum amount for the employee deduction. The same calculations available for the previous fields are available here, in addition to N/A.
Frequency: Enter the Frequency with which the employee deduction is processed. If you select Every Scheduled Pay, you see a box to block the last payroll deduction of the month, the third payroll for bi-weekly payrolls, or the fifth payroll for weekly payrolls, in months when an extra payroll is processed. Note: These settings will typically default to what the company policy require. 



Then you will see the settings that auto fill based on the Retirement plan settings. These boxes will generally be grayed out so you are unable to override the system settings. 



The Arrearage Settings:

Note: these are typically left blank because the system is set up to default a specific way.

Arrearage Function: Use this field to establish how the system handles deductions when there are insufficient earnings to withhold the scheduled deduction.

  • Discard Underfunded Amount: When there are insufficient earnings to withhold the full deduction amount, the underfunded amount will be discarded. The employer can choose to forgive this amount or enter a manual adjustment to recover the amount from the employee on the next available pay statement.

  • Arrear the Underfunded: When there are insufficient earnings to withhold the full deduction amount, the underfunded amount will be moved to the Adjustments section of the employee’s file to be recovered on the next Pay Statement with sufficient earnings.

  • Discard the Entire EE Deduction: When there are insufficient earnings to withhold the entire deduction amount, the entire deduction amount will be discarded. The employer can choose to forgive this amount or enter a manual adjustment to recover the amount from the employee on the next available Pay Statement.

  • Arrear the Entire EE Deduction: When there are insufficient earnings to withhold the full deduction amount, the entire deduction amount will be moved to the Adjustments section of the employee’s file to be recovered on the next Pay Statement with sufficient earnings.

  • Move Underfunded to ER and Discard: When there are insufficient earnings to withhold the entire deduction amount, the underfunded amount will be moved to the Employer in order to pay the vendor and then discarded. The employer can choose to forgive this amount or enter a manual adjustment to recover the amount from the employee on the next available Pay Statement.

  • Move Underfunded to ER and Arrear: When there are insufficient earnings to withhold the entire deduction amount, the underfunded amount will be moved to the Employer in order to pay the vendor and then discarded. The underfunded amount will be moved to the Adjustments section of the employee’s file to be recovered on the next Pay Statement with sufficient earnings. When the amount is recovered, it will again adjust the employer portion to keep the deduction in balance.


Then select Save & Add in the top right.

















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