How the Payroll Process Determines Pretax Catch-Up Contribution Eligibility

The payroll process determines whether each employee is eligible for any pretax catch-up contributions offered through your deferred compensation plans.

When you run payroll, the process:

1. Checks whether the employee has opted in or out of these age-based catch-up contributions, and identifies the appropriate pretax catch-up element based on:

   • Associated element entry, such as 401k Pretax Catch-Up

   • Employee Catch-Up Contribution is set to Yes on their 403 (b) or 457 (b) card components

2. Checks whether the employee is 50 years or older in the current calendar year.

3. Checks whether the employee is marked as eligible for these contributions in their Reporting Information card.

4. Based on these results, if the employee is eligible and opted in, the process calculates the deduction. Otherwise, it sets the deduction to $0.