Issue/Symptom/Question

How do I setup 401k Match in PENTA, when there are multiple or layered match percents? 

Example:

100% match on contributions up to 3%

50% match on contributions greater than 3%, but not to exceed 6%

Applies To

401k Employer Match

Master Deductions
Payroll> Setup> Deductions, Reimbursements, and Other Compensation> Master Deductions

Master Reimbursements
Payroll> Setup> Deductions, Reimbursements, and Other Compensation> Master Reimbursement 

Voluntary Deductions
Payroll> Employees> Voluntary Deductions

Voluntary Reimbursements
Payroll> Employees> Voluntary Reimbursements

Resolution/Fix/Answer

Please refer to Setting up 401k match in Penta for information on setting up a single 401k match without multiple matching thresholds.

Using the example below, you will need to setup two employer match deduction/reimbursement combinations.

Example: 

100% match on contributions up to 3%

50% match on contributions greater than 3%, but not to exceed 6%

Employer Deduction #1:

• Calc Base: % of another deduction (link to employee 401k deduction)
• Percent field: 50%
• Max Matching %: 3%

Employer Deduction #2:

• Calc Base: % of another deduction (link to employee 401k deduction)
• Percent field: 50%
• Max Matching %: 6%

Together, the two employer deductions will match 100% of the employee's 401k contributions up to 3%, and 50% of the employee's 401k contributions above 3% but capped at 6%.