Contribution Matching Subtask
This subtask is required when you are using the PCTDED (Percentage of Deduction) method for a contribution, and the employer's matching percentage changes based on the percent that the employee is having withheld.
If the rate is always the same, do not use this subtask; enter that rate in the Rate % field on the Deduction Details tab. This subtask is also required when you are using the PCTANN (Percentage of Annual), PCTREG (Percentage of Regular), and PCTGRS (Percentage of Gross) methods for a contribution, and the employees matching percentage change is based on the amount of Annual, Regular, or Gross wages, respectively. If you are using PCTANN, PCTREG, or PCTGRS, the Rate % field on the Deduction Details tab must be 0.00.
Example 1:
| Wages/Rates Over | Up to and Including | Matching % |
|---|---|---|
| 0% | .02 | 100% |
| 2% | .04 | 75% |
| 4% | .10 | 66% |
Example 2:
| Wages/Rates Over | Up to and Including | Matching % |
|---|---|---|
| 0% | .02 | 100% |
| 2% | .04 | 75% |
| 4% | .06 | 66% |
| 6% | .10 | 0% |
Example 3:
| Wages/Rates Over | Up to and Including | Matching % |
|---|---|---|
| 0.00 | 68,400.00 | 7% |
| 68,400.00 | 250,000.00 | 9% |
| 250,000.00 | 1,000,000.00 | 11% |
If you are using PCTDED (Percentage of Deduction), this subtask is appropriate only if the deduction code is both a deduction and a contribution. If you are using PCTANN (Percentage of Annual), PCTREG (Percentage of Regular), or PCTGRS (Percentage of Gross), this subtask is appropriate for a deduction code that is a contribution only or both a deduction and a contribution.
Contents
| Field | Description |
|---|---|
| Wages/Rates Over |
If you selected the PCTDED (Percentage of Deduction) method on the Deduction Details tab, enter the lowest deduction percentage over which a particular matching percentage is required. The characters entered are interpreted as a rate not to exceed 100%. This rate must equal the Up to and Including field, unless the rate is 0%. If you selected the PCTANN (Percentage of Annual), PCTREG (Percentage of Regular), or PCTGRS (Percentage of Gross) method, the characters entered are interpreted as wages. Enter the lowest wage over which a particular matching percentage is required. This wage must equal the Up to and Including field, unless the wage is 0.00. |
| Up to and Including |
If you selected the PCTDED (Percentage of Deduction) method on the Deduction Details tab, enter the highest deduction percentage for which a particular matching percentage is required. If you selected the PCTANN (Percentage of Annual), PCTREG (Percentage of Regular), or PCTGRS (Percentage of Gross) method, enter the highest wage for which a particular matching percentage is required. |
| Matching Percent |
Enter the employer percentage that must be contributed for the range of employee contribution percentages or wages on the row. This is multiplied by the applicable employee contribution to calculate the employer's matching contribution. Using the table from Example 2, if the employee contributes 3% of salary, the employer's match is a total of 2.75% of salary, calculated as (2% x 100%) + (1% x 75%). Using the table from Example 3, if the employee's gross wages (YTD) were 68,000.00 and his gross wages (this pay period) are 4,000.00, the employer's match is a total of $352.00, calculated as (400.00 * 7%) + (3,600.00 * 9%). Also, using the table from Example 3 when the PCTANN (Percentage of Annual) method is selected, if the employee had a salary was $85,000.00, YTD gross wages of 65,384.60 and current gross wages of $3,269.23, the employer's match is a total annual amount of $6,068.00. This is calculated as (85,000.00 * 92% * 7%) + (85,000.00 * 8% * 9%). |