Use this screen to specify certain options related to your deferred compensation plan. You should set up a separate screen for each deferred compensation plan that your company administers. You can specify your plan entrance and eligibility information, the vesting percents associated with each year for company contributions, and general information pertaining to options offered, forfeitures handling, and other aspects of the plan.
You can use the Employee Deferred Compensation Info screen in Costpoint Employee to assign up to five plan codes per employee.
Initialize this screen after assigning deduction codes in the Deductions screen in Costpoint Payroll and before any other deferred compensation processing takes place.
Enter an alphanumeric code (up to six characters) to uniquely identify this deferred compensation plan. This is a required field.
Enter up to 30 alphanumeric characters to describe this deferred compensation plan. This is a required field.
Use the drop-down box to select the appropriate financial institution for this plan. This is the third-party administrator for your plan.
Enter up to 20 alphanumeric characters for the plan code assigned by the third-party plan administrator.
Use this group box to specify plan entrance and eligibility requirements. You can enter information in either the Number of Hours per Year or the Required Months of Service field, but not both. Provide the other information as appropriate.
Enter the calendar day that an employee can begin participation in the deferred compensation plan. You can enter up to two numeric characters. Remember that not all months have the same number of days. This information is combined with the information below to calculate an eligibility date for each employee that is shown on the Print New Eligible Employees report. (Please note: If you assign the eligibility date in the Employee Deferred Compensation Info screen in Costpoint Employee, the date assigned will appear on the above report instead of the calculated date.) This is a required field.
Enter the one-character frequency code that identifies how often an employee may become eligible to enter the plan. Enter "S" (Semi-annually), "Q" (Quarterly), "B" (Bi-monthly), "M" (Monthly), or "I" (Immediate) (i.e., no waiting period). This is a required field.
Enter the earliest calendar month of the year that an employee is eligible to enter the plan. If the Entrance Frequency is "M" (Monthly), enter "01" for January. If the Entrance Frequency is "Q" (Quarterly), enter the number representing the first month. For example, the first quarterly month might be January (January 1st). The system will then calculate the remaining entrance months within the year based upon the Entrance Frequency. In this example, the entrance months calculated would be January, April, July, and October (Quarterly frequency).
If your deferred compensation plan requires a number of hours of service for entrance into the plan, enter that number of hours. You should enter either the number of hours in this field or the number of months in the Required Months of Service field, but do not attempt to enter both hours and months. The maximum number of hours that can be specified is 1,000 hours. This field is not required if the Entrance Frequency is "I" (Immediate).
If your deferred compensation plan requires a number of months of service for entrance into the plan, enter that number of months. You should enter either the number of months in this field or the number of hours in the Number of Hours per Year field; however, do not attempt to enter both hours and months. The maximum number of months that may be specified is six months. This field is not required if the Entrance Frequency is "I" (Immediate).
Enter the minimum age that an employee must attain to become eligible to enter the plan. The largest number that you can enter is 21.
Use this group box to designate the vesting schedule associated with this plan. It is used only for company contributions that are not fully vested when granted. In other words, there is no need to fill out this table for company contributions that are 100% vested when credited to the employee.
Enter the year associated with the vesting percent. The valid values are years "1" through "7." You can specify a maximum of five rows (year and percents).
Enter the vested percent associated with the number of years of completed service specified above. Non-top heavy plans must follow a schedule that vests at least as fast as the following two schedules:
Schedules:
|
Years |
Percent or |
Years |
Percent |
|
3 |
20 |
5 |
100 |
|
4 |
40 |
|
|
|
5 |
60 |
|
|
|
6 |
80 |
|
|
|
7 or more |
100 |
|
|
Enter the schedule that is appropriate to your plan. It does not have to be identical to one of the above schedules.
Use this group box to describe general characteristics of the plan.
Select this checkbox to indicate that the plan is based upon regular wages only, i.e., the wage base excludes overtime wages. The ADP and ACP reports will exclude all pay types that are not designated as "Regular" from the base wages column.
Select this checkbox to indicate that the plan provides for the "Calendar Year Election" for determining the time period to use for the lookback year. Whether an employee falls into the "High Comp" group is determined normally by looking at the current plan year and the prior plan year. The calendar year election will change the definition of the prior plan year time period (lookback year). The Print High Comp Analysis Report uses this checkbox to determine the prior year time period.
Select this checkbox to indicate that the plan also allows employees to have deductions that are not tax exempt from Federal Income Tax (FIT) Withholding. All plans allow deductions that are exempt from FIT; however, some plans also allow employees to make after-tax deductions to their plan balances. This checkbox is for informational purposes only.
Select this checkbox to indicate that the plan provides that all unvested contributions on the part of the employer be allocated among the remaining plan participants when an employee terminates employment with the company. This checkbox is for informational purposes only.
Changes to this screen update the Plan Setup (H_CODA_SETUP) table.