Create employee contribution rate as part of setting up 401(k) plans in benefits

In this example, you create a primary parent rate of the Employee payroll contribution activity type, for the plan you created. Link the employee element that you created earlier to this rate and configure the calculation method to accept a flat amount from employees during enrollment. This task is part of the playbook on setting up 401(k) plans in benefits.

1. Click Navigator > Benefits Administration > Plan Configuration.

2. Start the Benefit Plan Details task.

3. Create a standard rate.

4. Provide a meaningful name for your rate, and complete these fields:

   Field	Value
   Plan Name	Select the 401(k) plan you created in an earlier task.
   Legal Employer	Select your legal employer. You can select the payroll element only when you select the legal employer.
   Rate Display Type	Primary You want employees to enter the amount they want to contribute to the plan.
   Activity Type	Employee Payroll Contribution
   Unit of Measure	Percentage
   Tax Type Code	Pretax
   Parent or Child Rate Type	Parent
   Payroll Element	Select the employee contribution element
   Element Input Value	Percentage

5. In the Calculation tab, complete these fields:

   Field	Value
   Calculation Method	Flat amount
   Participants enter value during enrollment	Select
   Ranges	Enter an appropriate minimum election value, maximum election value, increment, and default value. For example, 1-20, in increments of 1. Remember, according to the scenario, participants should enter a percentage.

6. In the processing information tab, select these checkboxes:

   • Process each pay period by default
   • Recurring

7. Save your changes.