How to Set up 401k Match?

The following are the use cases you can refer to when setting up 401K Match.

Use Case 1

An example of how you might set up 401K Match after 1 year of service is provided.

1. Navigate to Maintenance > Workforce > Workforce Planning Setup and click the Workforce Attributes tab.
2. Set up the attribute with the % contributed - up to the max contribution that the company will match (7% in this case).
   
   
3. Navigate to Maintenance > Workforce > Workforce Planning Setup and click the Compensation Items tab.
4. Set up a compensation item that will use the attribute above and calculate the amount the company will match. Calculation is based salaries & commissions (% of wages). For example, if the employee contributes 2% of their wages to the 401K plan, the company will match @ 1.5% of their wages the Account should be a statistical account.
   
   
5. Create a 2^nd compensation item so the match will not kick in until the employee has been with the company for a year: Map the compensation item to the 401K. Match Exp Account Compensation item should be tiers on Employee Attribute - Value in % of Wages - Attribute is Years of Service. Set up 2 tiers - one for less than 1 year, and one for over 1 year (note: up to 1 year on the first tier will be the entire first year of service). Map the compensation item to the 401K Match load above which has the calculated company match for all employees. This compensation item will take the compensation item above and record the expense only for employees with service over 1 year.

Use Case 2

Set up a compensation item for 401K match that is fixed and different for each employee. Based on % of wages.