Savings Plan Deduction Begin Date
Our 401k enrollment rule is the 1st of the month after 30 days to be eligible and enrolled in our employer contribution program. We add this during the hire event, but are running into issues with the deduction begin date and I am wondering if anyone has solved for this.
Scenario 1:
Hire date 3/25/2021, coverage begin date would be 5/1/2021. We have a pay period end of 4/30/2021 for the 1st check in May (5/7/2021). In this case, we need the deduction to being on the pay period preceding coverage begin date. However, it causes issues in scenario 2 below:
Hire date 1/15/2021, coverage begin date would be 3/1/2021. Our pay period ends on 3/5/2021 for the first check date in March (3/12/2021), so pay period preceding would take the deduction a pay period too early and in this case, we need pay period containing coverage begin date (which seems a bit redundant with coverage date because if it's in the pay period, it will take - unless I am missing something).