Create pretax employer rate as part of setting up 401(k) plans in benefits

In this example, you create a secondary rate for the pretax option of the main 401k plan. Link the after-tax element (that you created before) to this rate and configure the calculation method to calculate a contribution that’s 25% of the employee contribution rate. This topic is part of the playbook to set up 401(k) plans in benefits.

1. Click Navigator > Benefits Administration > Plan Configuration.

2. Start the Benefit Plan Details task.

3. Click Create > 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.
   Option	Select the pretax option.
   Legal Employer	Select your legal employer. You can select the payroll element only when you select the legal employer.
   Rate Display Type	Secondary You want to display the employer contribution amount to employees during enrollment.
   Activity Type	Employer Payroll Contribution
   Unit of Measure	Percentage
   Tax Type Code	After-tax
   Parent or Child Rate Type	Child
   Payroll Element	Select the employer contribution element that you created before.
   Element Input Value	Percentage

5. In the Calculation tab, complete these fields:

   Field	Value
   Calculation Method	Multiple of parent rate
   Multiplier	25 According to the scenario, the employer should contribute 25% of the employee’s contribution.
   Operator	Percentage of
   Parent Rate Name	Select the employee contribution rate you created before.

6. In the processing information tab, select Process each pay period by default.

7. Save your changes.