401k %

[captainship]

Has anyone else had an issue with the 401K match % not calculating correctly? We have a simple plan and I am using the 401k setup. Last year we had a 1% match and this year it is 2%. I ran the Payroll setup wizard and made the change, but it still calculates at 1%. Is this because I haven't closed the year? I don't think that should be the case since it tells you to leave payroll open for two years. Any ideas?
-dk

[jwilfong]

I had a similar problem but didn't have time to figure it out. We also have a SIMPLE plan. We elected to contribute once a year. To simplify the whole process, I removed the employer calculation entirely. (Didn't have a problem with the employee part). I created a special payroll report that I export to excel, add a few calcs for my share, forward the money and general journal the entry in. Worked great. I can repeat this process at any time to see what my liability is.

I'm sure I could have figured it out but this way I know my amounts are correct with less balancing. ie: 24 pay periods compared to 1 year.

If you don't want to do this check File | Payroll Tax Tables | User Maintained... and look for something like:

Tax ID Tax Name
406K ER 401K ER 06

In the 'Formula' portion of the dialog you will see some variables. I believe variable 'D' is what you want. It should be set to the percent you want to contribute.

The '06' above is for 2006. If you don't have it it will need to be created.

--
John

[captainship]

Thanks John! I checked the User Maintained tables and the 06 still had the old %, but 05 had been changed. The payroll wizard must go by the Period Date and not the System Date??

Anyway, thanks again for the fix!!

-Doug