| FAQ 689: Matching--Calculation not limiting to % of compensation |
I can't get the match to limit to 100% of the first 3% of comp. It's doing the 100% of deferrals correctly, but disregards the % of pay limitation.
Go to the Compensation Definition (COMPDEF) screen in the general specs and change the Compensation has been Input field to "Yes" and recalculate.
From the online Help for this field:
Compensation has been Input
Answer "Yes" to this question if compensation has been stored (either by processing or input) in the employees' records. The system will then apply the applicable limits accordingly. If you running a 401(k) plan just to allocate earnings and print periodic valuation reports, and you are not tracking compensation, you can answer this question "No" until the final valuation period of the plan year. When running the budget routine or calculating employer matching that is to be limited to a specified percent of pay, this question should always be answered "Yes". Answering "No" to this question when calculating match with a percent of pay cap will result in a calculated match that effectively has no cap.