Automatically update employee SECURE 603 catch-up eligibility

Use the SECURE 603 Catch-Up Eligibility Update data type in the Start-of-Year Process flow to automatically evaluate and update pretax catch-up eligibility for the new year.

You can manually set employee eligibility in the Reporting Information calculation component of their Reporting Information card. See How do I manually update employee SECURE 603 catch-up eligibility?

When selected, the flow:

1. Evaluates the prior-year's Social Security taxable wages using the specified SECURE 603 evaluation level.

2. Compares those wages to the SECURE 603 high-earner threshold.

3. Derives the value to use for determining pretax age catch-up contribution eligibility.

Run the process in Draft mode to preview the results before it updates the employee records. Run the process in Final mode to update the Reporting Information cards.

In Final mode, the process sets Eligible for Pretax Age Catch-Up Contributions to:

• No when the employee is classified as a SECURE 603 high earner

• Yes when the employee isn't classified as a SECURE 603 high earner

The process doesn't create Reporting Information cards. The card must already be defined for the payroll relationship.

Before you run the process, configure or review the SECURE 603 evaluation level and review the SECURE 603 high-earner threshold amount.