SAP Benefit issue

[Former Member]

Dear Expert,

I have created the saving plan as per the US law

1. Age < than 50 then $17500 is the contribution limit
2. Age > than 50 then $22500 is the contribution limit.

Now when system is not calculating anything above $17000 even though the age group is above 50 plus. I have also created wage type
and also set the limit in tabel V_511P.

Please suggest as how i can solve the same.

Thanks in advance.

With regards

Abhay

[Former Member]

We have two separate plans set up to handle this. The first is a plan that has the normal limit and the second is one that has a limit of 5500. This plan then is only given to those over 50. We were never able to find a way to make the limit change based on age.

[Former Member]

Hi Linda,

We have two different plan but the second plan 50+ yrs is only not calculating. It is not considering catchup amout.

Please suggest.

With regards

Abhay

[ted_dinh]

Does the ee (over 55) have two 401K plans in IT0169, one for regular 401K, and one for catch up ?

[Former Member]

Hi Dinh,

We have only one 401K plan.

With regards

Abhay

[ted_dinh]

This is why it doesn't w/hold 401K catch-up. Since there're two plans, ees over 55 will need to also enroll in catch-up plan (i.e. two separate IT0169, one for regular 401K, and one for catch-up) in order

for payroll to withhold catch-up amount.

[Former Member]

Thanks Dinh. I have done that but still problem is there on the calculation part.

With regards

Abhay

[Former Member]

Hello

Couple of options

Make sure employee did not reached 401(K) base salary limit of 250K. Chekc employee's CRT for /102. You can find the limit in the IMG under benefits integration.

Check the IMG step for dedcution with limits. The reason i am saying this step because before SAP created constants to maintain IRS for 401(K) plans, we used the concept of deduction with limits to specify the IRS limits and maintain them regularly when ever IRS limit is changed. YOu can find this step under payroll US > Dedcution> Dedcution with limits > assign limits to wage type class. or when you run payroll for yu test employee check the function LIMIT in the payroll log and see.

Make sure employee's age on IT 2 is >50

Also make sure that you specified the catch up wage type in the step where you assign wage type plans.

I always recommend my customer to have one plan but different wage types for regualr 401(K) or catch up 401(K)

[Former Member]

Hi Tinku,

Thanks for your reply. I have two 401K plan created for normal as wellas for catchup. I have also created two wage type and assigned them also. Also i have checked th limit that is also correct but still system is not calculating properly.

Please suggest.

With regards

Abhay

[Former Member]

Hi Tinku,

Please let me know if we have set the catchup date only after normal limit get over.

Please confirm.

With regards

Abhay

[former_member184702]

Hello ,

Savings plans must be taken every pay period. Hence the deduction model cannot be assigned. Are employees typically contributing set amounts to the savings plan or a percentage? The expectation is for a percentage which would be taken every period.

You can try this ,

1) Delimit the EEs IT0169 records to stop for the periods in which you don't want deductions.

2) Instead of using IT0169, place the fixed value deductions on IT0014 and assign a process model there. Manage any limits through wage type classes.

Regards

Siva

[Former Member]

Hi Siav,

Here the problem is system is not calculating after 17000, where as it should calculate till till 22500 as the age is more tha 50.

Please suggest.

With regards

Abhay

[Former Member]

If this issues resolved, please close the thread and give points.

[Former Member]

Hello,

Thanks for the solution after after maintaining the same, then also it is not deducting.

Please suggest.

With regards

Abhay

[Former Member]

Hello,

Make sure that your configuration is correct in table V_T7USBEN03. You can find this table under Payroll US > Benefits integration > Set up for catch up contribution.

And also make sure payroll constant "401CL" value is correct in T511P. And also employee's age is 50 & above.

Thank you

PM