Create Employee Rate for 401(k) Catchup Plan

In this example, you create a primary rate of the Employee payroll contribution activity type. Link the after-tax element to it. Configure a flat amount calculation method to accept the employee contribution as a percentage.

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:

   Option	Description
   Field	Value
   Plan Name	Select the 401(k)-catchup plan you created earlier.
   Legal Employer	Select your legal employer. You can select the payroll element only when you select the correct 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	After tax
   Payroll Element	Select the employee after-tax contribution element
   Element Input Value	Percentage

5. Ensure that these checkboxes are selected:
   • Element and input values required
   • Assign on enrollment
   • Display on enrollment
6. In the Calculation tab, complete these fields:

   Option	Description
   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, you want participants to enter a percentage.

7. In the processing information tab, select Process each pay period by default.
8. Save your changes.