Use this screen to enter necessary tax information related to the administration of a 401(k) or other deferred compensation plan. Included are the deferred compensation plan start and end dates defining each significant year of the plan. The wage limit and deferral limit are defined by year. The wage limit is used by the ADP and ACP reports. The High Comp Basis column is used by the Print High Comp Analysis report for classifying employees as belonging to the "highly compensated" group. We recommend that you set up a separate screen for each deferred compensation plan that your company administers.
Establish this screen before generating any of the deferred compensation reports.
Enter, or use Lookup to select, the alphanumeric plan code (up to six characters) that you established to identify the applicable deferred compensation plan. This is a required field.
The deferred compensation plan description will display to the right of this field.
Enter the plan start date for the selected deferred compensation plan. This start date and the end date below should represent the plan year, which may be different from the calendar year. You should enter each row that you will be using for running any of the deferred compensation reports, and you should enter one row for the first year of the existence of the plan. For example, if the plan was established in 1995, and you want to run reports for 2001 and 2002, you would need to enter at least three rows: one for 1995 (first year of existence), one for 2001, and one for 2002 (the years for which you need to run reports). You can skip years in this table as long as you are not running reports against the "skipped" years. The date format is MM/DD/YYYY. This is a required field.
Enter the plan end date for the deferred compensation plan. This end date and the start date above should represent the plan year, which may be different from the calendar year. The date format is MM/DD/YYYY. This is a required field.
Enter the wage limit that applies to this plan year. The Internal Revenue Service (IRS) states wage limits by calendar years. If your plan year is different from the calendar year, you should use the limit based upon the start date of your plan year. For example, if your plan year starts on 07/01/01 and ends on 06/30/02, you would use the IRS 2001 calendar year limits in this table. The wage limit entered in this screen is the same wage limit that is entered in the Federal Taxes screen in Costpoint Payroll. The information in this screen is used to link these limits to your Deferred Compensation Plan Year, and is used by the ADP and ACP reports.
Enter the maximum amount that can be deferred within the plan year. The deferral limit entered in this screen is the same deferral limit that is entered in the Federal Taxes screen in Costpoint Payroll. The system uses the information in this screen to link these limits to your Deferred Compensation Plan Year. The deferral limit entered in this screen is for informational purposes only.
Enter the IRS-specified Category 2 amount for determining highly compensated employees. If an employee exceeds this amount within the current plan year or the prior ("lookback") plan year, the employee is classified as "Highly Compensated" (without consideration to any other factors). The value in this column is used by the Print High Comp Analysis report to classify employees as "highly compensated."
Changes to this screen update the following tables:
Plan Tax Information - H_CODA_TAX_INFO
Plan Setup - H_CODA_SETUP