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