401K Plans

Computer Check Book

• If the 401K amount deducted from the employee's check is the same amount week to week then enter the amount on the Standard Check Screen.
  
  
• If you want the system to take a percentage of the employee's gross then go to Setup -> Payroll -> Assign Active Weeks for Payroll Items, call up the employee and enter a percentage. (ie: 4.00 = 4%, 3.50 = 3.5%)
  
  
• If you setup the employee 401k deduction using either of the first (2) options you are all set. The system will automatically deduct the 401K amount from the gross before figuring Federal W/H.
  
  
• You can also manually enter the amount on the Payroll Entry Screen. But if you enter it this way you will have to remember to click the Recalculate Check Button otherwise the Federal W/H amount will be wrong.
  
  The system automatically figures Federal W/H after the gross is entered. So if you enter a 401K amount the system will not automatically refigure Federal W/H as there is already a figure in the field.
  
  
• If you want the system to subtract the 401K amount from the gross before figuring State W/H make sure that the 401K payroll item is listed under deductions in the State Tax Jurisdiction.
  
  Also make sure that the State Code is listed on the 401K payroll item State Screen.