We have several different payroll areas that an employee can be in depending on their job. We have a payroll area for hourly employees (Bi-weekly Payroll Area), we have a payroll area for salaried employees (Semi-Monthly Payroll Area) and people who are on a monthly payroll.
We have been finding that when participants move between the payroll areas the deferral election on file is not being calculated.
Currently the participant has to be active in the payroll area at the end of the pay period in order for the deferral to be withheld from the paycheck.
We understand the different standard system options unclude:
1. Beginning of the payroll period
2. End of the payroll period
3. Check date
The employee would either need to be active in the payroll area at the beginning of the pay period, the end of the pay period, or on the check date.
All three of these options pose a problem for us, we would need the system to calculate the 401k if the participant is in the payroll area at anytime during that pay period.
Side Note: Master data typically starts all payroll area changes at the beginning of the next available pay period. If an employee moves to the monthly payroll they do not make the change effective the beginning of the next monthly cycle they make the change effective the day after the last day they will be paid on the bi-weekly payroll. See examples below.
Scenario:
1. Bi-weekly to Semi-Monthly Move- Change effective 4/1/2014
-Regular Bi-Weekly Pay Period: 3/24-4/6/2014. Employee paid in the Bi-weekly pay area for the period of 3/24-3/31/2014, 401k election is NOT withheld.
-Regular Semi-Monthly Pay Period: 4/1/2014-4/15/2014, Employee paid in the semi-monthly pay area for the period of 4/1-4/15/2014, 401k election is withheld.
2. Bi-weekly to Monthly- Change Effective 4/8/2014.
- Regular Bi-Weekly Pay Period: 3/24-4/6/2014. Employee paid in the Bi-weekly pay area for the period of 3/24-4/6/2014, 401k Election is withheld.
-Regular Semi-Monthly Pay Period: 4/1-4/30/2014. Employee paid in the monthly pay area for the period of 4/8/2013-4/30/2014. If we changed our setting to the beginning of the payroll period the 401k would NOT be withheld.
Does anyone know of any customization that would solve this problem? Our internal IT department is saying that it is not possible.
Any information would be appreciated!