FAQ 800: Budget--Partnership compensation reduction/staff match expense added on top of original income

Problem:

K-1 income reported is X. When using the budget routine to calculate the safe harbor match, the compensation is being increased by the ASC calculated match.


Solution:

Because the match formula is set up in source 3 and the contribution is in Source 4, the Benefit Limits (BENLIMIT) screen is coded to move the Source 3 match to source 4 since it is a safe harbor match. With this setup, when you run the Budget and print the Partnership report, you need to check both Source 3 and Source 4.