Issue/Symptom/Question

You can now group multiple deductions to accrue toward a single annual limit.
Employers with benefit plans where multiple contributions can affect a single annual limit, such as 401K plans, where employees contribute to both a traditional 401K account and a Roth 401K account.

Applies To

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

Payroll > Employees > Voluntary Deductions

Resolution/Fix/Answer

Master Deductions window:

• A new tab, Shared Limit Deductions, facilitates grouping multiple deductions to share a single annual limit.

Select one of the related deductions to be the primary deduction and use the new tab to enter the Deduction # of the other deduction(s) contributing to the same limit.

• Modifications to the Annual Limit field allow entry for the primary deduction in a shared limit group but prevent entry for the non-primary deductions in the group.

For the nonprimary deductions, adjacent to the disabled Annual Limit Field, PENTA displays the number of the primary deduction for the shared limit group for the deduction.

Voluntary Deductions window:

• Modifications to the Annual Limit field allow entry for the primary deduction in the combined limit group, but prevent entry in that field for deductions linked to the primary deduction.

For the deductions linked to the primary deduction PENTA displays the primary deduction’s annual limit and adjacent to it displays ‘Linked to Ded. #99’ (where 99 is the actual primary deduction’s number).

• A new field, Annual Limit Accrual, displays the year to date total of all the deductions in the shared limit group accruing toward the same annual limit.

For deductions that do not belong to a shared limit group, this field displays the same value as the existing Year To Date field.
The Year To Date field of a shared limit deduction displays that deduction’s contribution toward the shared Annual Limit, which is helpful when a Roth and Traditional amount contributed to a shared Annual Limit

• Modifications to the Employee Interface Deductions Detail Record reflect the changes to the Voluntary Deduction window.

Payroll processing changes:

• PENTA accrues all deductions in a shared limit group toward the shared annual limit, stopping all deductions in the group if any deduction in the group causes the limit to be reached.

Reports:
• A new Annual Limit column and other changes to deduction register reports show shared limit deductions accruing to the same annual limit:

YTD Deduction Register
Deduction Register - Date Range
Deduction Register - Control Date by OU, Deduction
Deduction Register - DR by OU, Deduction, Emp

• A new Shared Limit Deductions Audit report provides per check information related to deductions accruing toward a shared limit.

Benefits:
• Efficient administration of 401K or other benefit plans with multiple contribution accounts
• Eliminates the risk of a deduction causing a shared limit to be exceeded

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