Hi can anyone please help me in finding a solution for the below Scenario we have.
A Company has a Gross UP Wage type and the wage type amount is eligible for 401K contribution. But as per gross up rule no deduction should happen from the gross up payment. This means if Gross up Payment is made using Off Cycle payment the employee should get a net pay without any deductions or taxes. e.g Gross UP Pay $200 Net Pay $200.
In the next payroll cycle if an employee earns 1000$ the 401K eligible wages must be $1200, caring out the Gross up payment for $401K.
Please shut some light, to start with.