Company Match limit on 401(k)

unknown

We have our employee retirement deductions set up to be 50% of the employee’s deduction up to their contribution of 6%. We have cap on the match of $7,800 total for the plan year, which is June-July. In testing, when employees reach their employee contribution calendar year limits of $18,000, the match is also capping. But, the match is capped before the $7,800 plan year to date amount. The employees still have a remaining balance amount left in their record on PR14.1. It is also not following the cap of the $18,000 contributions (so, if they have a $1000 paycheck and they elected to contribute 6%, or $60, but they reach their calendar year cap and can only contribute $30, it’s not taking either $30 or $15, or ending at $7,800 for the plan year. Does anyone know how Lawson's calculates the company match when an employees hits the employee plan limit?

sriman-shivakoti

If your match is connected to the employee deduction and in the same plan, it won't create a company match because there is nothing to "match". If you want to give them a 3% company contribution each pay, you can set up a plan to do that. I am not sure why the system wouldn't have taken the $30 in your example above. Are they a highly compensated employee who also reached that limit? If so, and you wanted them to contribute, there is a flag for that as well.