Really need this calculation method for 401k contributions.
A Basic Safe Harbor Match calculation is when the employer matches 100% of the first 3% of each employee’s contribution and 50% of the next 2%. Employees are required to contribute to their 401(k) in order to get the match.
by: Art L. | over a year ago | Payroll
Comments
Art, keep in mind that is only the MINIMUM Safe Harbor Calculation. Many employers go beyond the minimum formula.
What is really needed is a robust formula tool for creating complex deduction calculations similar to what is on the Dexter+Chaney platform. There are many deductions, such as child support, tax levies, etc that rely on multiple data points to reach the correct result. In all these cases the Payroll Accountant is left to calculate the correct deduction amount, taking into account all the variables, then enter in a manual override during the payroll process.