How to Set Up a Deferred Compensation Item with Employer Contributions #
Overview #
This knowledge base article provides step-by-step instructions on how to set up a deferred compensation item with employer contributions in Pro-Pay, a payroll software solution. This process involves configuring employer deductions, employee deductions, and pay-to-agency settings.
Steps #
1. Set Up Employer Deductions #
- Navigate to the Employer Deductions section in Pro-Pay.
- Set up two deductions as follows:
- 401-k as a (D)eduction
- 401-k Match as a (M)emo
- Check the appropriate boxes based on the taxability of the item.
- Enter the appropriate letter for W-2 box 12, 14, 11, or 10 (refer to Pro-Pay help instructions for guidance).
2. Set Up Employee Deductions #
- Go to the Employee Deductions section in Pro-Pay.
- Set up two deductions as shown in the image below:
3. Configure Pay to Agency (Optional) #
If you want to generate a check to the appropriate agency:
- Set up Pay to Agency for both amounts as shown below:
- If you wish to pay these amounts each pay date, change the Pay Frequency to “P”.
Note: Agency checks will be printed automatically when printing employee checks. A report will also be automatically generated showing all amounts deducted and matched by the employer.
Troubleshooting #
If you encounter issues while setting up the deferred compensation item:
- Double-check that all fields are filled out correctly in the Employer and Employee Deductions sections.
- Ensure that the appropriate boxes for taxability are checked.
- Verify that the correct W-2 box letter is entered.
- If using Pay to Agency, confirm that the Pay Frequency is set correctly.
Additional Help #
For more detailed information or assistance:
- Access the Pro-Pay help menu within the software.
- Visit our website at https://www.Paysoft.com for additional resources and support.
Feedback #
We value your input! If you have suggestions for improving this documentation or encounter any issues not addressed here, please contact our support team through the Pro-Pay software or our website.