How do I set up employer contribution matching for 401 (k)?

When using the Elements task to create a 401 (k) contribution element, you're asked if your new element should have an employer match contribution associated with it.

If you choose Yes, the template automatically creates an indirect element and assigns a name based on the base element's name, such as " Employer Match". The default employer contribution match is $.50 for every $1 contributed by the employee, with a maximum limit of 6% of the employee's pay per pay period. However, you can override these values through the element's input values.

For employees hired midyear, it's possible they have had employer-matching contributions through their previous employment. To ensure contributions don't exceed the statutory maximum, enter the employee-specific statutory limit in the contribution element's Override IRS Limit input value, set through the element entry. If you do this, you must remember to remove the override for the next tax year.