Creating Retirement Plans

You can create 401(k) retirement plans to automatically calculate employee contributions and employer match.

To create a retirement plan:

Go to Setup > Payroll > Setup Tasks > Retirement Plans > New.
In the Plan Name field, enter a name for the retirement plan.
In the Description field, enter a description for the retirement plan.
If you use NetSuite OneWorld, in the Subsidiary field, select the subsidiary that can use this retirement plan.

Note:
After you create a retirement plan, you cannot edit the subsidiary.
In the Compensation field, select the type of compensation you want to base the plan on.

You can select either Gross Amount or a Payroll Item Group of eligible earnings. For more information, see Creating Payroll Item Groups.
Check the following employee contribution boxes to include them in the retirement plan:
- Employee Contributions
  - Pre-Tax Contributions
  - Designated Roth Contributions
- Catch-Up Contributions (Over 50)
  - Pre-Tax Contributions
  - Designated Roth Contributions
If an employee contribution is eligible for employer match, below the employee contribution, check the Eligible for Employer Matching box. You can set up either a basic or advanced formula to calculate employer match.
Set up a basic or advanced formula to calculate employer match.
- To set up a basic match formula, do the following:
  1. Enter the employer match percentage.
  2. Enter the employer match cap.
    
    Note:
    You can also set a limit on the payroll item. For more information, see Setting a Limit for a Payroll Item.
  For example, you enter 50% in the first field and 6% in the second field. The maximum employer match for an employee’s compensation of $1000 is calculated as $1000 x 50% x 6% = $30.
- To set up an advanced match formula, do the following:
  1. Click the arrow beside Advanced Match.
  2. Check the Use Advanced Match box.
  3. Under Tier of Contributions, select either percentage or amount.
  4. Set the employer match percent.
  5. Set the employer match cap.
  6. Click Add to create additional tiers.
    
    For example, you want to match the first 3% of an employee’s contribution. Then, you want to match 50% of the next 3% of an employee’s contribution. To do this, you would enter the following:
    
    Match 100% of the first 3% of employee's contribution
    
    Match 50% of the next 3% of employee’s contribution
Click Save.

After you create a retirement plan, you can derive the respective deduction and company contribution payroll items from the plan. For more information, see Creating Payroll Items and Deriving a Payroll Item from a Retirement Plan.

To create a retirement plan:

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