FAQ 948: ADP - Calculating ATM on failed ADP test without a Match Formula posted

Problem: How does ASC calculate the ATM on a failed ADP test without a formula coded?

Solution: If the system is not given a formula at all it will still generate an ATM by pro-rating the contributions (match/total deferral - including catchups). In this case we have John Doe with an ATM of 1182.64. This is calculated from his match/total deferral = 4230.16/22000=.192280 multiplied by his ADP excess of 6150.63 6150.63 * .192280 = 1182.64 Likewise, review Jane Doe who has an ATM of 1232.59. This is calculated from her match/total deferral = 4569.24/21704.28 = .210523 multiplied by his ADP excess of 5854.91 5854.91 * .210523 = 1232.59