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Set up multiple 401k limits within one company file.

When you have employees with various 401k contribution limits, you can not alter a single 401k payroll item to reflect multiple contribution limits.

Once an employee reaches their contribution limit, this article will help you set up a new Payroll Item to meet their needs:

How to fix it

To create a new payroll item for each different 401k cap:

  1. Click on the Lists drop-down menu, and select Payroll Item List.
  2. Click on the Payroll Item button in the bottom left corner, and select New.
  3. Choose EZ Setup, click Next.
  4. Choose Retirement Benefits, click Next.
  5. Choose 401(k), click Next.
  6. Fill in the payment schedule information, click Next.
  7. Click Finish.

Return to the Payroll Item List.

  1. To set your cap, choose the 401k item to edit.
  2. Make any necessary changes on the first page, click Next.
  3. Enter tax agency information, click Next.
  4. Choose your tax tracking type, click Next.
  5. Review the taxes affected, click Next.
  6. Review the calculate based on window, click Next.
  7. Enter your default rate and the upper limit and click on Finish.

You can do this for each varying rate and then apply to the appropriate employees to allow you to have multiple 401k caps within the same company.

KB ID# SLN64344
3/28/2017 4:52:34 AM
QYPPRDQBKSWS08 9138 Pro 2017 31d102