FAQ 218: 401a4--Monthly compensation calculation for mid-year entrants that terminate Problem: On the 401(a)(4) support pages, how does ASC compute the monthly compensation for someone who entered the plan mid-year, but was terminated prior to the year ending? Solution: Below is an explanation of how the system comes up with the monthly compensation figure on the support page using two employees as an example:If the "Use Post-entry" box under Compensation Options on the 401(a)(4) screen is unchecked (the default):Employee #1:Months worked (rounded): 10 (January - October; terminated 11/5/2004)Full year compensation: \$49,846.72 Monthly compensation: \$4,984.67 (\$49,846.72 / 10 = \$4,984.67)Employee #2:Months worked (rounded): 11 (January - November; terminated 11/29/2004)Full year compensation: \$49,449.23Monthly compensation: \$4,495.38 (\$49,449.23 / 11 = \$4,495.38)If the "Use Post-entry" box under Compensation Options is checked:Employee #1:Months worked after entry (rounded): 4 (July - October; terminated 11/5/2004)Post-entry compensation: \$20,413.42 Monthly compensation: \$5,103.36 (\$20,413.42 / 4 = \$5,103.36)Employee #2:Months worked after entry (rounded): 5 (July - November; terminated 11/29/2004)Post-entry compensation: \$22,317.79Monthly compensation: \$4,463.56 (\$22,317.79 / 5 = \$4,463.56)If you want their annual compensation just divided by 12 like the other active employees, uncheck the "Use actual mos." box when running the test.