401(a) Limits Are Not Imposed During the Pay Period The Employee's Earnings Reach The Limit For Employees With Multiple Jobs.
(Doc ID 2418871.1)
Last updated on MAY 12, 2022
Applies to:PeopleSoft Enterprise HCM Human Resources - Version 9.2 to 9.2 [Release 9]
Information in this document applies to any platform.
The 401(a) limits are NOT stopping the employee's contributions when this limit is reached when there is more than one (1) Benefit record contributing to the same limit. On the paycheck in which the employee reaches the limit, the pay calc is calculating the correct amount to get the employee to the limit on the first benefit record and then calculating the exact same amount for the second benefit record. So when the employee's check is confirmed, the employee has now OVER contributed towards the 401(a) limit.
This only occurs when an employee is contributing on both benefit records.
The issue can be reproduced at will with the following steps:
1. Enroll an employee with multiple jobs and multiple Benefit Record Numbers to the same 401K plan
2. Ensure the next payroll the employee will exceed the 401a Limit on the first Job
3. Run Payroll Calculation and review that both Benefit Record Numbers deduct the same 401K Deduction amount and exceeds the 401a Limit.
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