I've tried. Really. But I just can't figure out how to set up the company match to our new 401K 'safe harbor' plan.
Our company will match up to 4% of an employee's wages. If the employee selects to withhold 1-3%, we match dollar for dollar. At 4% we match 3.5%, at 5%, we match 4%.
All this I can understand - set up a company match percentage default, and change it for those who do not take the full 5%.
My confusion is where folks have entered a weekly dollar amount to deduct.
It's obvious to me that if the dollar amount equals or exceeds 5% of the workers salary, a straight percentage in company match item will work.
But, for amounts that fall UNDER a full 5% of pay, how do I default the match? What percentage do I enter into the QB company match payroll item?
Must I hand calculate the percentage of salary that the employee's dollar amount represents - and THEN decide what to enter into company match?
How do I ensure that the amount the company contributes does not exceed the amount the employee has contributed? If QB will cap the match to the employee contribution, then I suspect a default of 3% in company match might work.
Any help would be welcome.