Determining if Employees are Reaching an Elective Deferral Limit

Note: The Payroll application determines elective deferral limits using Business Software, Inc. (BSI).

Determine whether an employee's contributions to 401(k), 403(b), or 457 plans approach the elective deferral limit or the maximum annual additions limit. Use the report to stop or reduce contributions for those employees who are reaching the percent of compensation limit.

To determine if employees are reaching their elective deferral limit

  1. Access Employee Deferral Report (BN335).
  2. In the Parameters section, use the following guidelines to enter field values:
    Tax Year

    Type the tax year for which the report is being run. This is a required field.

    Report Option

    Select the report you want. This is a required field.

    If you select Annual Additions Maximum, the report uses the maximum annual additions limit from Benefits Annual Limits (BN12.1). If you select Elective Deferral Limit, the report lists employees who are approaching the elective deferral limits for the tax year.

    Defined Contribution Type

    If you selected Elective Deferral Limits in the Report Option field, select the kind of defined contribution plan you want on the report.

    Contribution Percent

    If you selected Elective Deferral Limits in the Report Option field, type the percentage of the Maximum Deferral field amount that an employee's elective deferral must exceed to appear on the report. For example, if you type 75, the report shows employees whose contributions are 75 percent or more of the amount in the Maximum Deferral field.

    Maximum Deferral

    If you selected Elective Deferral Limits in the Report Option field, type the current annual pretax deferral limit for the type of defined contribution plan selected in the DC Type field.

  3. Select the Add form function.
  4. Submit the report.