Currently you have to put both the 401k and the 401k catch up on the employee deductions and liabilities at the same time. Currently if you put the 401k catch up on after the year has started it will only calculate the catch up and not look at the actual 401k and stop taking out 401k prior to the limits being met.
If I need to add the 401k catch up deduction later after the employee turns 50 during a year, should be able to have the 401k still calculate until the full limits before it calculates the catch up.
I was just told this was by design in the VP system, I feel it is a flaw.
Company | BRC |
I need it... | 1 month |
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I agree that this sounds like a bug and I have requested a review by Development. An employee's standard pre-tax deduction(s) are processed each pay period and should be limited by their pre-tax group. The catch-up deduction should only be calculated once the group's annual limit has been met. Assigning a catch-up deduction or changing limits after the initial setup should be self-correcting in later pay periods.
Sounds like a bug that needs to be fixed.