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US PAY: How to configure 401k Deferral and 401k Catch up Percentage not to exceed overall percentage
Our management employees only set a single 401k deduction percentage which applies both to the regular 401 deferral and the 401 catchup deferral elements. A problem occurs during the period where the annual limit is hit by the employee and triggers the catchup deduction processing that is set as Sequential.
Example scenario:
Annual Limit at $15,500
Employee YTD is $15,000
Employee Salary of $10,000 and deduction amount of 10% triggers a $500 deduction instead of $1000 due to annual limit
Catchup Deduction of 10% is triggered, deducting an amount of $1000
Overall deduction for employee for that period is $1500 which is 15% of overall salary instead of expected $1,000.
Is there a way to configure catchup to just take what was not taken in the regular deferral ($500) instead of the full amount ($1000)?
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