Our company contributes 3% to employees participating in 401(k) Plan no matter how much they contribute

Our company contributes 3% to employees participating in 401(k) Plan no matter how much they contribute

Support Team Asked on December 15, 2017 in Sage.
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    Description
     
    • Our company contributes 3% to our employees who participate in our 401(k) Plan no matter what the employee is contributing.
    • How do I set this type of contribution without creating a brand new formula in the User Maintained tax tables?
    • Most employees receive the company 401K contribution, even if they do not contribute/participate
    Disclaimer
     
    Support
    Sage Customer Support does not provide assistance for issues related to third party products or enhancements, hardware, report customizations, state or federal tax-related questions, or specific accounting questions. Please contact your Sage business partner, network administrator, or accountant for assistance. Please review this document for additional information on the scope of Sage Customer Support Services.
    Resolution
     

    Note:

    • These steps assume the 401K benefit has already been set up, and was set so that both employees and employer contribute
    • The contribution limits in the formulas are current as of 2017

    Section I: Standard Contribution Limit

    1. Click File, Payroll Formulas, User-Maintained
    2. From the Formula ID drop-down list, select 401K ER XX, with XX being the current 2-digit year
    3. Remove the current Formula by highlighting it and pressing BACKSPACE or DELETE
    4. Paste the following formula in:

      “This formula is for a set company contribution rate that applies to employees regardless of the employee contribution rate”
      LIMIT=18000.00;
      PERCENT=3.00000;
      A=ADJUSTED_GROSS*PERCENT%;
      B=-YTD(401K_ER);
      C=IF((A+B)>LIMIT,LIMIT-B,A);
      ANSWER=-C

      Note: Change the PERCENT to match the desired company contribution rate

    5. Click Save
    6. Continue to Step 2 of Section II

    Section II: Catch-Up Contribution Limit

    1. Click File, Payroll Formulas, User-Maintained
    2. From the Formula ID drop-down list, select 401K ER XX, with XX being the current 2-digit year
    3. Change the Formula ID to 401KcER
    4. Click Save to create the new formula and prevent overwriting the existing formula
    5. Change the Name to 401Kc ER XX, with XX being the current 2-digit year
    6. Remove the current Formula by highlighting it and pressing BACKSPACE or DELETE
    7. Paste in the following formula:

      “This formula is for a set company contribution rate that applies to employees regardless of the employee contribution rate; this version is for employees eligible for 401K catch-up contributions”
      LIMIT=24000.00;
      PERCENT=3.00000;
      A=ADJUSTED_GROSS*PERCENT%;
      B=-YTD(401K_ER);
      C=IF((A+B)>LIMIT,LIMIT-B,A);
      ANSWER=-C

      Note: Change the PERCENT to match the desired company contribution rate

    8. Click Save
    9. Close User-Maintained Payroll Formulas

    Section III: Set Catch-Up Limit Employees to the Correct Formula

    1. Click Maintain, Employees/Sales Reps
    2. Select the Employee ID of an employee using the catch-up limit
    3. Select the Company Fields tab
    4. On the 401K ER line, uncheck Use Defaults
    5. From the Formula list, select 401Kc ER
    6. Click Save
    7. Repeat these steps for other employees as needed

    Section IV: Set Applicable Employees to Not Receive Company Contribution

    1. Click Maintain, Employees/Sales Reps
    2. Select the Employee ID of an employee who will not receive the company contribution
    3. Select the Company Fields tab
    4. On the 401K ER line, uncheck Use Defaults
    5. Uncheck Calc
    6. Click Save
    7. Repeat these steps for other employees as needed

    Source: Sage Community forums.

    Disclaimer: Sage Accounting Solution is an independent provider of Sage Related services and is not affiliated with Sage.

    See More: Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Sage issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If you are experiencing too many issues, you may want to more info Call Sage Tech Support Phone Number

    Support Team Answered on December 15, 2017.
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