Creating Retirement Plans
You can create 401(k) retirement plans to automatically calculate employee contributions and employer match.
To create a retirement plan:
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Go to Setup > Payroll > Setup Tasks > Retirement Plans > New.
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In the Plan Name field, enter a name for the retirement plan.
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In the Description field, enter a description for the retirement plan.
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If you use NetSuite OneWorld, in the Subsidiary field, select the subsidiary that can use this retirement plan.
Note:After you create a retirement plan, you cannot edit the subsidiary.
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In the Compensation field, select the type of compensation you want to base the plan on.
You can select either Gross Amount or a Payroll Item Group of eligible earnings. For more information, see Creating Payroll Item Groups.
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Check the following employee contribution boxes to include them in the retirement plan:
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Employee Contributions
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Pre-Tax Contributions
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Designated Roth Contributions
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Catch-Up Contributions (Over 50)
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Pre-Tax Contributions
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Designated Roth Contributions
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If an employee contribution is eligible for employer match, below the employee contribution, check the Eligible for Employer Matching box. You can set up either a basic or advanced formula to calculate employer match.
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Set up a basic or advanced formula to calculate employer match.
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To set up a basic match formula, do the following:
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Enter the employer match percentage.
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Enter the employer match cap.
Note:You can also set a limit on the payroll item. For more information, see Setting a Limit for a Payroll Item.
For example, you enter 50% in the first field and 6% in the second field. The maximum employer match for an employee’s compensation of $1000 is calculated as $1000 x 50% x 6% = $30.
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To set up an advanced match formula, do the following:
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Click the arrow beside Advanced Match.
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Check the Use Advanced Match box.
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Under Tier of Contributions, select either percentage or amount.
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Set the employer match percent.
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Set the employer match cap.
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Click Add to create additional tiers.
For example, you want to match the first 3% of an employee’s contribution. Then, you want to match 50% of the next 3% of an employee’s contribution. To do this, you would enter the following:
Match 100% of the first 3% of employee's contribution
Match 50% of the next 3% of employee’s contribution
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Click Save.
After you create a retirement plan, you can derive the respective deduction and company contribution payroll items from the plan. For more information, see Creating Payroll Items and Deriving a Payroll Item from a Retirement Plan.