How can I set a custom company limit for certain contribution types?
When setting up Contribution Pay Types in the Settings section of the Payroll app, you may notice some Contribution Categories allow for a Company Max to be set.
Which pay types allow for a Company Max?
Only Contribution Categories that are monitored by an annual cap, such as:
- 401k Retirement Plan
- 401k Retirement Plan (Catch Up)
- Health Savings Account (HSA) Pre or Post Tax
- Flex Spending Account (FSA) & Dependent
What is a Company Max?
A Company Max is a custom limit that you can set for that contribution type. For example, if your company has a policy that you'll match employee 401k contributions up to $6000 annually, you can enter $6000 to have company contributions automatically stop once the company has contributed that amount to an individual using that pay type that year.
I entered a percentage for the Company Max, why is it maxing out early?
The Company Max field can only accept a flat dollar amount. The Contribution Per Pay Period field (which allows you to choose between a flat dollar amount or percentage of disposable income) is separate from the Company Max. So if you entered a number in the Company Max field, for example, 5.0, thinking it was a percentage amount, the system would take that to mean the Company Max is $ 5 .00.
I made the mistake of entering a percentage, how can I fix it?
Once you've used a contribution type in a pay run, you will not be able to delete it. To correct an invalid Company Max, create a new contribution pay type with the category, then enter the correct Company Max. If your company doesn't use Zenefits to manage benefits, then you'll also need to add this new contribution pay type to your workers' Pay Templates.