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Payroll - Offering Roth 401k Option and Traditional 401k Deductions

  • 1.  Payroll - Offering Roth 401k Option and Traditional 401k Deductions

    BRONZE CONTRIBUTOR
    Posted Mar 12, 2021 11:04 AM
    Good morning,

    We are currently exploring offering Roth 401k post-tax deductions to our employees along with the traditional 401k pre-tax deduction and I was wondering if anyone else who is currently utilizing the Payroll module within SL is doing this, maintaining two different deduction IDs with a combined max deduction amount?  And if so, how have you been able to do this?

    Our thought is that instead of maintaining the maximum deduction on the deduction ID we would have to capture that at the employee level, in order for the combined total deducted not to exceed the current $19,500 (or $26,000 for over 50).

    Any insight or suggestions are welcome.

    Thanks,​

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    Valerie VanAntwerp
    ERP Manager
    MCKenney's, Inc
    Atlanta GA
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