Creating defined contribution rules

  1. Sign in as Payroll Administrator and select Setup > Deduction Structure.

    or

    Sign in as Administrator and select Set Up > Payroll > Deduction Structure.

  2. Click the Defined Contribution Limits tab.
  3. Click Create.
  4. Specify this information:
    Benefit Plan
    Select a benefit plan. For example, Defined Contribution Plan Match Limit, Defined Contribution Plan Match Percent, or 401(k).
    Description
    Optionally, specify a description of the benefit plan.
    Limit Option
    These options determine when the employee’s contributions stop during the Calculated Payments action if the plan rules track the compensation or contribution limit. Contributions stop when the employee’s eligible compensation meets or exceeds the compensation limit, or the total of employee and employer contributions meets or exceeds the contribution limit.
    • Contribution Limit Only
    • First Limit Met; Compensation or Contribution
    • Do Not Apply Either Limit; Compensation or Contribution
    • Compensation Limit Only Applies To Employer Deductions; Contribution Limit Enforced For Both
  5. Click Save.