E1: 07: 401K Basis Is Not Calculated As Per The Basis Of Calculation (Doc ID 3064182.1)

Last updated on DECEMBER 18, 2024

Applies to:

Symptoms

Client is required to reduce the Non Qualified contribution from the 401k Gross Basis from next year. A negative accumulator DBA was created with 100% of the Non Qualified contribution and assigned it to the basis of 401K DBA code. However, the basis amount for 401K is not calculating correctly because the negative amount calculated is not subtracted from the 401K Basis Amount.

Steps to Reproduce:

1. Setup a 401k DBA Deduction (P059116) as follows:
   1. DBA Code = 3450
   2. DBA Type = D (Deduction)
   3. Source of Calculation = G (Current Period)
   4. Method of Calculation = % (Percent Based on Gross)
   5. Amount/Rate 1 = 3.000 (percent)
   6. Annual Limit = 23,000.00
2. Basis of Calculation (P059118) is all Pay Type DBAs From 1 Thru 999
3. U.S. Legislative/Regulatory (P059116U)
   1. Pre-Tax Deduction Type = 401k Deferral
4. Setup a Negative Accrual DBA (P059116) as follows:
   1. DBA Code = 3455
   2. DBA Type = A (Accrual)
   3. Source of Calculation = G (Current Period)
   4. Method of Calculation = % (Percent Based on Gross)
   5. Amount/Rate 1 = -100.000 (percent)
5. Advanced DBA Setup Screen (P059117) setup
   1. Calculate for all employees checkbox (TRPF) checked
6. Basis of Calculation (P059118) setup
   1. From 3450 Thru 3450 (401k Amount)
7. Setup a 401k DBA Deduction (P059116) as follows:
   1. DBA Code = 3515
   2. DBA Type = D (Deduction)
   3. Source of Calculation = G (Current Period)
   4. Method of Calculation = % (Percent Based on Gross)
   5. Amount/Rate 1 = 3.000 (percent)
8. U.S. Legislative/Regulatory (P059116U)
   1. Pre-Tax Deduction Type = 401k Deferral
9. Basis of Calculation (P059118) is all Pay Type DBAs and Negative Accrual DBA
   1. From 1 Thru 999
   2. From 3455 Thru 3455 (Neg Accrual)
10. Add DBAs to Employee DBA Instructions
    1. 3450
    2. 3515
11. Run Interim Payroll (P07210I) for employee. Pay stub shows:
    1. DBA 3450 Deduction calculates as +67.20 as expected
    2. DBA 3455 Negative Accrual calculates as -67.20 as expected
12. DBA Review shows
    1. 401k DBA 3450 (+67.20) and Negative Accrual DBA 3455 (-67.20) are calculated correctly as expected
    2. DBA 3515 Basis is same as DBA 3450 (not expected)
    3. Client expected DBA 3515 Basis to be reduced by the negative amount under DBA 3455 (-67.20).

Cause

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