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:
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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:
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Associated element entry, such as 401k Pretax Catch-Up
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Employee Catch-Up Contribution is set to Yes on their 403 (b) or 457 (b) card components
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Checks whether the employee is 50 years or older in the current calendar year.
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Checks whether the employee is marked as eligible for these contributions in their Reporting Information card.
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Based on these results, if the employee is eligible and opted in, the process calculates the deduction. Otherwise, it sets the deduction to $0.