Pre-Tax 401K ER Match is Incorrect When A Military Makeup 401K (USERRA) Element is Present
Last updated on DECEMBER 06, 2016
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
Pre-Tax 401k Match incorrect when a Military Makeup 401k element present
The ER match portion of our 401k Pre-Tax element is higher than the 3.25% of the compensation that it should be when a military makeup element is also present.
When the military makeup element is not there, the match is correct for the pre-tax.
Expect the ER Match to total 3.25%
The issue can be reproduced at will with the following steps:
From uploaded screen shots:
Employee Used in test (I have duplicated this on other employees, it is not specific to this one):
Pre-Tax Element Entry – 10% withholding
Enter time entry wages of 80 hours
Run a quickpay
Viewing the SOE after the quickpay
Earnings are $2,222.40. Match should be a maximum of 3.25% of that which comes to $72.23. Match is correct on this run.
Go back to element entries and add a 401k Military Makeup element (element used was created fresh for testing, this was originally duplicated with our real military makeup elements)
Rerun the quickpay and view the results. The Pre-tax 401k match is now over the limit by $38.89 on the pre-tax. It should still be $72.23, not $111.12.
From doing some tracing previously, it seems that the balance “Pension Compensation Limit” is causing this. Removing the special features inputs (401k Makeup Roth SF and 401k Makeup Special Features) from this balance seems to correct the issue, and the match will then calculate correctly.
Results of rerunning the quick pay after removing feeds from the Pension Compensation Limit Balance. This is the expected result.
The issue has the following business impact:
The Employer Match is calculating on the Military makeup element and it should not be
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