Creating defined contribution limits

  1. Select Payroll > Administration > Setup.
  2. In the Structure pane, click Deductions.
  3. Click the Defined Contribution Limits tab.
  4. Click Create.
  5. Specify this information:
    Year
    Specify the year.
    Compensation
    Specify the annual compensation limit.
    Contribution Annual Limits
    Specify the annual contribution limits for Tier 1, Tier 2, and Tier 3.

    This is the total employee and employer amount.

    Age Range 1 Begin
    Specify the starting age for the first range in the tier.

    For example, specify 50 for Tier 2 to include employees aged 50–59.

    Age Range 2 Begin
    Specify the starting age for the second range in the tier, if the tier covers two non-contiguous age ranges.

    For example, specify 64 for Tier 2 to include employees aged 64 and above.

    The employee must have a birthdate specified on their employee record to identify the appropriate Contribution Annual Limit Tier when the calculate payment process is run.

    If no birthdate is specified, the Tier 1 Defined Contribution Annual Limit is used.

  6. Click Save.