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401k Still Deducting Even After The Hitting The $255,000 Limit - Total Wages (Doc ID 1579689.1)

Last updated on MARCH 12, 2019

Applies to:

Oracle HRMS (US) - Version 12.1.3 and later
Information in this document applies to any platform.


On : 12.1.3 version, Pension/PreTax Processing
Production instance

Have an employee that starts the 401k deductions in the middle of the year, the system is not taking the entire wages for the year as part of the Eligible Comp. The system uses the earnings starting when the 401k deduction is added to the employee's record

All of the employee's earnings to be a part of the Eligible Comp for 401K whether the employee has the 401K deduction on their record or not

The issue can be reproduced at will with the following steps:
1. Pay an employee has YTD earnings $250,000
2. Then in the middle of the year, they elect the 401k deductions
3. They are expecting that only $5000.00 in earnings are still eligible for 401k
4. The system actually starts calculating the eligible comp earnings when the 401k deduction is added to the employee's record

The issue has the following business impact:
Due to this issue, users cannot expect the 401K deduction to stop when the employee has $255,000.00 in wages before and after the 401k deduction is attached to the employee's record


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