FAQ 362: Compensation--Post-entry compensation coding


Plan requires year of service for participation. Date of entry is first of month following for salary deferrals and semi-annual for profit sharing. Compensation prior to entry is excluded. How / where do I enter the different figures for the compensation that is excluded?


Here are the steps:

1. On the Compensation Definition (COMPDEF) screen: Answer "Yes" to Pre-Entry Compensation Input, and then check the boxes of the sources below that will use *full year* pay. If the box next to a source remains unchecked, the system will use post-entry compensation only.

2. In the employee records on the Compensation (COMP) screen, input the W-2 compensation in the "Plan" compensation field (COMP on the COMP screen if using the grid), and the pre-entry compensation in the Pre-Entry compensation field (PECOMP on the COMP screen if using the grid).

3. The system will calculate the post-entry compensation during the Limit Compensation calculations under Calculations-Valuation, which will be used for allocation purposes.