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401K Deferral Deduction Not Processed when Percentage more than 90%
We are on R12.1.3 and have encountered an issue where if an employee selects 401K Deferral of 90% or higher than no 401K Deduction was being taken. One workaround that is there is to compute the value of tax manually and update that before running payroll, but is not an efficient way of doing this. We wanted to know how other companies using Oracle Payroll have setup or handled this requirement.
401K element should process at 100%, take necessary deductions for SS and Medicare taxes, and than the remainder of the employees paycheck to the Deferred Comp element (Salary - Necessary Tax Deduction = Deferred Comp element)