The formula below is designed to calculate the company's 401K match fringe. For this example, the company matches 50% of an employee's deduction up to 6% of his gross pay. You may adjust this formula to meet your company's 401K match requirements.
- In Payroll, from the Tools menu, select Formulas and create the formula below:
401K Match Fringe
Min (Lookup (Amount [PR Check Deduct], Employee [PR Check], Period End Date [PR Check], Check Sequence [PR Check], "401K"), Gross Pay [PR Check] * .06) * .5 -
From the Setup menu, select Fringes.
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Create the fringe, 401K, and in the Calc method box, select Formula.
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In the Formula box, select 401K Match Fringe.
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Click Save and then click Close.
Note: The formula assumes the 401K deduction ID is 401K. The fringe formula does the following:
- Takes the minimum of either the employee's 401K deduction amount or 6 percent of the employee's gross pay.
- Multiplies this fringe basis by the company's matching percentage (50%).
Another example: to make the formula be a 100% match up to 6% - remove the "* .5" from the above formula (matches 100% up to 6% - if employee only holds 3% would match the smaller amount):
Min (Lookup (Amount [PR Check Deduct], Employee [PR Check], Period End Date [PR Check], Check Sequence [PR Check], "401K"), Gross Pay [PR Check] * .06)
The 401K with Prompt for ID's report, attached to this article, will retrieve information for your 401K and 401K fringe. Run it from Check Date Prompts.