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Issue getting employees who are close to max 403b contributions to hit the max

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kvetro60
Basic Member
Posts: 14
Basic Member
12/21/2016 3:51 PM

    We currently have maximum annual employee contributions for our 403b savings plan.  Employees who are under 50 can defer up to 18,000 and those 50 and over can contribute up to 24,000. 

    We are incurring a problem when employees get close the maximum rate for their BSI Group Code.  If a person with a max deferral of 18,000 has contributed 17,500 YTD and based on their deferral % in BN32 their next deferral amount would be over 500 (say 750), Lawson will NOT take the deduction at all so the employee stays at 17,500 rather than hit the max of 18,000.

    Our payroll department has a manual workaround process (typically PR39 entries) to force employees to hit the max, but that is just not a good practice.

    Does anyone have this process fully automated?  If so would you be willing to share your set up?

    Also, do any of you have one plan for the 18,000 max and a separate for the catch up 6,000?

     

    Thanks

     

    Margie Gyurisin
    Veteran Member
    Posts: 538
    Veteran Member
    12/21/2016 5:22 PM
      Our system takes up to the full amount. We do not have a BSI group Code on employees who are under 50. Between the BSI tax code on the deduction and Lawson, it follows the basic law. Only employees over 50 have the payment override set up in BSI and the group code in Lawson. You may want to look at your overrides in case something wasn't set up for the new year. The other thing you have to be careful of is to include every tax authority affected by the dc limits. For example a MD employee would need the override to include the state and county tax where a PA employee does not need to be set up. Federal withholding needs to be set up.

      Sorry for the long story.

      We manage both the under 50 and catch up in the same plan.
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