Create Element for After-Tax Deductions
In the scenario, you need to create a payroll element to hold the employee’s after-tax contribution towards the 401k catch-up plan.
- Depending on your access privileges, start the Elements task from the My Client Groups quick actions or from the Setup and Maintenance work area.
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Complete these fields:
Option Description Field Value Legislative Data Group Select your legislative data group Primary Classification Voluntary Deductions Secondary Classification Benefits After Tax -
Click Continue. In the Basic Information page, complete these fields,
leaving other fields as is.
Option Description Field Value At which employment level should this element be attached? Payroll relationship level Should every person eligible for the element automatically receive it? No
You want Benefits to make the element entry, not any other application.
Can a person have more than one entry of this element in a payroll period? No Earliest entry date First standard earning date Latest entry date Last standard earning date - Click Continue. In the Additional Details page, click Percentage deduction for the What is the calculation rule section. During benefits enrollment, you want participants to enter a percentage of their salary as the contribution, and you want to process that percentage in payroll.
- Click Next, review the details, and submit your changes.
- Open the element you created and create element eligibility. You don’t need to enter any criteria, but make sure that the Automatic Entry check box is deselected.