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Former Member
Jan 10, 2008 at 05:23 PM

401k calculation

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Hi Experts,

Before starting to explain you about the problem, i think we understand that /102 will be equal to basic pay (/101)) in the initial step of payroll calculation.

Now coming to the problem:

My company has benefit plans called Non Qualified Deferred Comp and 401k. Some employees may choose to participate in just 401k or both 401k as well as Non Qualified Deferred Comp plans.

Scenario 1:

If at all they choose Non Qualified Deferred Comp Plan and 401k plan, then their Non Qualified Deferred plan contribution should be

NONQ contribution = "x" % of original /102

And now their 401k eligible wages (new /102) should be

new /102 = "original /102" - NONQ

And their 401k contribution should be

401k contribution = "y" % of "new /102"

Scenario 2:

If at all they choose only 401k plan then their 401k eligible wages should be the original /102

401k contribution = "y" % of "original /102"

According to my client, payroll calculation should be like how i described above. But, SAP is not working like that. When i ran payroll, i see 401k contribution being calculated first and then NONQ contribution calculated next. Is there any way to modify the schema or write a rule where we could calculate the NONQ contribution first, then "new /102" and then 401k contribution based on this "new /102"......??

Please help!

Edited by: Babbi1977 on Jan 10, 2008 11:17 PM