Company Match Deduction Creation for Match Limit Schedules

How the Benefits Administration application creates the company match deduction depends on the plan's contribution schedule, which is defined on Match Limits Schedule (BN18.6). Based on the years-of-service range the employee is part of, the Benefits Administration application uses the figures directly from the contribution schedule for the company match deduction it creates.

The following examples at ABC Foods are based on the following contribution schedule.

Years	Match percent	Up to	$Amount
1-4	25%	5%	$1,000.00
5-99	50%	10%	$2,000.00

Mary has two years of service. The deduction is created in PR14.1 (Employee Deduction) like this:

Amount or percent	Up to	Balance type	Balance
25.00	5.00	D	$1,000.00

Bob has 15 years of service. The deduction is created like this:

Amount or percent	Up to	Balance type	Balance
50.00	10.00	D	$2,000.00

If the employee's contribution is split between pretax and after-tax, and the company matches both types of contributions, the match is prorated.

For example, Joe has ten years of service and contributes 10% pretax and 5% after-tax. Two company match deductions are created as follows.