Define Voluntary and Pretax Deductions

Use the Elements task to define voluntary and pretax deductions, such as 401 (k), 403 (b), or 457 deferred compensation.

You manage deferred compensation deductions through either calculation cards or element entries, depending on the plan type. You manage other voluntary deductions, such as gym membership, union membership dues, and charity donations, through element entries.

Use these steps to set up deductions.

1. Define the elements.

2. Define the third-party payees.

3. Define a third-party payment method for each third-party payee.

4. Enter the deduction details for each person. Do this in the following ways, depending on the deduction type and your setup.

   • Configure a Benefits and Pensions calculation card.

   • Define element entry.

   • Load benefit batches.

Define the Elements

When you define a 403 (b) or 457 deferred compensation plan deduction, the element template defines a calculation component. You add this component to the Benefits and Pensions calculation cards you assign to your workers.

To define a voluntary deduction for a 401 (k) plan:

1. Select the Standard category.

   This selection means you manage these deductions using the Element Entries task.

2. After defining the element, you can optionally add a Payee input value and select Third-Party Payee as the special purpose for it.

   If appropriate, enter a default value on the element or element eligibility record to populate the third-party payee details.

To define a voluntary deduction for a 403 (b) or 457 plan:

1. To define the base contribution, use the Elements task, and select the Pretax Deductions primary element classification and Deferred Compensation 403b or Deferred Compensation 457 secondary element classification

   You configure these deductions using the Calculations Card task and Benefits and Pensions card.

2. To define catch-up or employee match contributions, use Calculations Card task and define the contributions using the Benefits and Pensions card.

3. To define after tax contributions, use the Elements task and select the Voluntary Deductions primary element and the and Pension Plan After Tax 403b or 457 secondary classification.

   You configure these deductions using the Calculations Card task and Benefits and Pensions card.

Define Third-Party Payees

To define third-party payees, use the Third Parties task.

For further info, see Create Third Parties Options in the Help Center.

Define Third-Party Payment Methods

To define payment methods for all external payees, use the Third-Party Payment Methods task.

For further info, see Create Third-Party Payment Methods in the Help Center.

Enter Deduction Details for Each Person

For 403 (b) and 457 deferred compensation plans:

1. Use the Calculations Card task to configure a Benefits and Pensions calculation card for the person.

2. Add the 403 (b) or 457 calculation component to the card.

3. On Enterable Calculation Values on Calculation Cards, select whether its contributions are a flat dollar amount or a percentage of employee earnings per pay period.

4. For each employee, assign them to the appropriate component based on their contribution method election.

For voluntary deductions, you must define element entries.