401K Deductions not Correct for Employees with Deductions not Taken Due to Net (Doc ID 1328653.1)

Last updated on JUNE 07, 2023

Applies to:

Symptoms

Find that 401K savings deductions are not taken correctly for Tipped employees where their net pay is not enough to cover all Benefits and General deductions.  The expectation is that the Savings Plan deduction be increased so the net pay is zero.

STEPS
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The issue can be reproduced at will with the following steps:
1) Employee resides in California, with Tax Distribution CA 100%
2) JOB Payroll tax Tipped = Directly, FICA = Subject
3) Earnings 53.20, Tips 75.54
4) Enrollment into Savings Plan at 50% with Employer match
5) Payroll in 4/2011 results net pay was zero and Savings Plan deductions were 43.98 with 20.39 not taken due to net
6) Added General deductions 42.73 for loan repayment and 2.00 for a charity at a higher priority than savings plans deductions
7) General deduction for loan repayment of 39.58 was taken instead of Before Tax savings plan due to priority
8) Adjusted General Deduction loan repayment code to not take partial deductions
9) Savings plan deduction was 1.65, not taken 62.72 Net, Net Pay 38.10

Changes

Cause

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