How do I calculate 401k deductions so the Federal limit is not exceeded?

Deductions do not currently have a limit on the deduction setup, to create a universal limit for all employees you can create a formula to simplify new employee setup and reduce errors.

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401K Percent Limit Formula:

IF(LOOKUP (YTD Deduction [PR Employee Deduct], Employee [PR Employee],"401K") <19500, MIN (19500 - LOOKUP (YTD Deduction [PR Employee Deduct], Employee [PR Employee], "401K"), (Regular Pay [PR Check] + Overtime Pay [PR Check]) * LOOKUP (Amount [PR Employee Deduct], Employee [PR Employee], "401K") * 0.01))

Formula Notes:

• In this example formula the Federal limit is $19,500.
• If the Federal limit should change, you only need to replace the amount of 19,500 in the formula with the new limit amount.
  (The Federal limit amount used in this example is a variable amount that is subject to change.)
• This formula calculates based off Total Pay (Regular Pay + Overtime Pay) if Other pay types are used you may want to use Gross Pay, or add additional pay ID's to the formula.
• Enter the employee's deduction percentage in Setup > Employee > Deduction. Enter the percentage as a whole number. For example, type 15 for 15 percent.
• In this formula "401K" is the Deduction ID if you use a different Deduction ID you will need to replace this with the corresponding ID.

 

401K Flat Limit Formula:

IF(LOOKUP (YTD Deduction [PR Employee Deduct], Employee [PR Employee],"401K") <19500, MIN (19500 - LOOKUP (YTD Deduction [PR Employee Deduct], Employee [PR Employee], "401K"), LOOKUP (Amount [PR Employee Deduct], Employee [PR Employee], "401K"))

Formula Notes:

• In this example formula the Federal limit is $19,500.
• If the Federal limit should change, you only need to replace the amount of 19,500 in the formula with the new limit amount.
  (The Federal limit amount used in this example is a variable amount that is subject to change.)
• Enter the employee's deduction amount in Setup > Employee > Deduction.
• In this formula "401K" is the Deduction ID if you use a different Deduction ID you will need to replace this with the corresponding ID.