Creating match percent schedule contribution rules

Use this procedure to define contribution rules for a plan where employees contribute a percent or an amount that the employer matches, such as 401k or 403b.

The employer match is calculated as a percentage of the employee's contribution and is fixed or cumulative.

If the match calculation is fixed, the employer match directly corresponds to the percent of the employee's contribution. If the match is cumulative, the company match varies by incremental percents. The company match varies as the employee's contribution percent increases.

  1. Select Benefits > Plans > Benefit Plans.
  2. Select Match Percent Schedule check box.
  3. Double-click a defined benefit contribution plan from the record.
  4. Click the Contributions tab.
  5. Specify this information:
    Coverage Class
    Specify a coverage class from the options available.
    Contributon Date
    Specify a contribution date.
    Benefit Group
    Specify a benefit group to which the contribution applies.
  6. Select a contribution.
  7. In the Main tab, specify this information for all contribution types:
    Currency

    Select the currency in which to display tax type.

    Contribution Tax Type

    Select whether the employee contributions are Pre tax, After tax or Both. If the plan does not include employee contributions, select No Employee Contribution.

    This field must match the deductions attached to the plan.

    Default Tax Type

    Select a Default Tax Type when the Contribution Tax Type is Both.

  8. In the Calculation pane, specify this information:
    Employee Contribution Type

    Select whether employees can contribute as a percent, an amount, or both, or no contribution.

    Increment

    Specify the percent increment employees can contribute to the plan. For example, if you provide one, employees can make contributions of one percent, two percent, or three percent, within the other limits of the schedule. If you type 0.5, employees can make contributions of 0.5%, one percent, or 1.5%.

    Maximum Percent

    Specify the maximum total percent employees can contribute to the plan with pre tax and after tax contributions.

  9. In the Match pane, specify this information:
    Match Optional

    Select whether the employer must match contributions as pre tax, after tax or both.

    Calculation

    Select Fixed or Cumulative to define how the employer's match is calculated. If the employer matches only the contribution level the employee elected, select Fixed.

    If the company match includes all contribution levels up to the level the employee elected, select Cumulative.

  10. If the Contribution Type is Amount, specify contributions based on salary.

    Calculating contributions based on salary

  11. In the Deduction dates pane, specify this information:
    Begin
    Specify a beginning date for the deductions.
    If this field is left blank, then the deduction start date is the same as the enrollment date.

    To use a different Begin date, specify any of these options:

    • Pay Period Start: The begin date for deductions is the first pay period with the enrollment start date.
    • Next Pay Period: The begin date for deductions is the first pay period after the enrollment start date.
    • Closer Pay Period Start: The begin date for deductions is the closest pay period start to the enrollment start date.
    • First of Month: The begin date for deductions is the first of the month of the enrollment start date.
    • Next Month: The begin date for deductions is the first of the month after the enrollment start date.
    • Closer Month Begin: The begin date for deductions is the closest month beginning to the enrollment start date.
    End
    Specify an end date for the deductions.
    If this field is left blank, then the deduction end date is the same as the end date of the enrollment.

    To use a different end date, specify any of these options:

    • Pay Period End: The ending date for deductions is the end of the pay period with the enrollment end date.
    • Prior Pay Period: The ending date for deductions is the end of the pay period before the enrollment start date.
    • Closer Pay Period End: The ending date for deductions is the closest pay period start to the enrollment end date.
    • End of Month: The ending date for deductions is the end of the month of the enrollment end date.
    • End of Prior Month: The ending date for deductions is the end of the month before the enrollment end date.
    • Closer Month End: The ending date for deductions is the closest month end to the enrollment end date.
  12. Click Save.
  13. On the Detail tab, click Create, and specify this information:

    Define the employee, company, and company match contributions with limits based on the employee contribution.

  14. In the Secure Act Percent Increment Rules pane, specify this information:
    Auto Increment Percent
    Provide the increment to increase employee contributions.
    Maximum Contribution Percent
    Provide the maximum employee contribution to which automatic increments increase.
  15. Click Save.
    Note: 

    If the plan does not have unique contributions for specific benefit groups, you must define this contribution type once for a plan by leaving the Benefit Group field clear.

    If the plan has different contributions for different groups of employees, define one of these contribution types for each benefit group for which contributions are unique.

    If you define multiple contribution records for one plan, you can to leave the benefit group field clear on one of the records. The record with no benefit group is applied to all eligible employees who do not belong to the groups attached to the other records.