1. Employee Management
  2. Payroll
  3. SuitePeople U.S. Payroll
  4. Payroll Setup
  5. Payroll Setup for Employees
  6. Taxes and Jurisdiction Setup for Employees
  7. Setting Up Taxable Employer Match Contributions

Setting Up Taxable Employer Match Contributions

With SuitePeople U.S. Payroll, you can report 401(k) employer match contributions in jurisdictions that require employer contributions to be included in taxable wages. Use the 401K Employer Match pay code to meet these requirements. The 401K Employer Match pay code is available on the Payroll Item page.

Jurisdictions where this pay code is taxable and reportable include:

Note:

This list of jurisdictions is subject to change based on legislative requirements.

To set up 401(k) employer match contributions:

  1. Create the 401(k) Employer Match pay code.

    1. Go to Lists > Employees > Payroll Items > New.

    2. If you have a NetSuite OneWorld account, from the Subsidiary list, select a subsidiary.

    3. In the Item Type field, select Earning:Addition

    4. In the Pay Code field, select 401(k) Employer Match.

    5. In the Item Name field, enter a name for the payroll item.

    6. To add a description that appears on the Summary subtab of employees' paychecks, enter it in the Description field.

    7. If the Account Category list appears, select the type of account to associate with the payroll item.

    8. From the Expense Account, Liability Account, or Asset Account list, select the general ledger account to associate with the payroll item.

    9. To specify where this payroll item amount should appear in payroll reports, select a report in the ReportSection list.

    10. Click Save.

  2. Create the Nontaxable Fringe Benefit pay code.

    1. Go to Lists > Employees > Payroll Items > New.

    2. If you have a NetSuite OneWorld account, from the Subsidiary list, select a subsidiary.

    3. In the Item Type field, select Earning:Addition.

    4. In the Pay Code field, select Nontaxable Fringe Benefit.

    5. in the DefaultRate field, enter the equivalent negative percentage or value of the 401(k) Employer Matc h pay code you created.

      For example, If the rate of the 401(k) Employer Match pay code created is $150.00, the equivalent negative value should be set as set $-150.00.

    6. In the Item Name field, enter a name for the payroll item.

    7. To add a description, that appears on the Summary subtab of employees' paychecks, enter it in the Description field.

    8. If the Account Category list appears, select the type of account to associate with the payroll item.

    9. From the Expense Account, Liability Account, or Asset Account list, select the general ledger account to associate with the payroll item.

    10. To specify where this payroll item amount should appear in payroll reports, select a report in the ReportSection list.

    11. Click Save.

  3. Update payroll information. For more information, see Updating Payroll Information.

  4. Assign the payroll item to employee records. For more information, see Setting up Earnings for an Employee.

Note:

You are responsible for reporting employer match contributions for each pay period, or at least quarterly. Review jurisdiction rules and quarter-end deadlines to ensure payroll earnings are reported in the correct period.

General Notices