Setting up a 401K plan in Basic Builder Payroll

 

 For each employee that has 401K withheld from their Payroll, an additional deduction must be created.

 

1.          Go to Payroll => Add/Edit => Deductions, Pays, Contributions.

 

2.          Use 401 and an identifying character such as the employee number for the Code (example: 401001,401002).

 

3.          For Function choose, "401K Withholding".

 

4.          For Frequency choose, "every period".

 

5.          Select the Method and Amount.

                   

6.         For Cut Off, you will need to know the amount previously deducted from the employee's pay and if the employee is    

  over or under 50 years of age. 

 

7.          Select Reset every year.

 

8.          Go into the individual employee record and assign the correct 401k deduction to the employee.

 

9.          If you ever need to change the amount of an Additional Deduction or the way it is taken out (Flat or Percentage), you must un-assign it and create a new Additional Deduction with the new amount. Now assign the new deduction to the employee record.

 

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