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Administrator Guide
Last Updated: 2024-02-23
Example: Create a 401(k) Employer Match Deduction (USA)

Example: Create a 401(k) Employer Match Deduction (USA)

Illustrates how to create a 401(k) employer match deduction.
Your 401(k) retirement savings plan includes an employer match on both 401(k) pretax and 401(k) Roth post-tax employee contributions. You use a step-based calculation to calculate the employer match percentage.
  • Create a step-based calculation named
    401(k) + Roth ER Match Calculated Percentage
    .
  • Define a pay component group named
    Retirement Savings Eligible Wages
    .
  • Define a 401(k) pretax deduction, named
    401(k)
    .
  • Define a 401(k) Roth post-tax deduction named
    401(k) Roth
    .
  • Define a 401(k) Total Contributions EE > 0 value comparison calculation.
  • Define a pay accumulation named
    401(k) Total Contributions: EE + ER [USA]
    .
  • Security:
    Set Up: Payroll (Calculations - Payroll Specific)
     domain in the Core Payroll functional area.
  1. Access the
    Create Deduction
     task.
  2. Enter these settings:
    Option Description
    Name
    401(k) & Roth Employer Match
    Category
    Payroll
  3. Enter these settings on the
    Effective Dated
     tab:
    Option Description
    Effective Date
    Today
    Run Category Eligibility
    Bonus
    Regular
    Worker Eligibility
    Row 1:
    401(k) Total Contributions EE > 0
    Workday recommends you review your benefit plan configuration for worker elections.
  4. Select the
    Calculation
    Base (unprorated) * Percent
    .
  5. Enter these settings in the
    Related Calculations
     grid:
    Related Calculation
    Override Calculation
    Limit Details
    Value
    Limit Details
    Balance Period
    Limit Details
    Based On
    Base (unprorated)
    Retirement Savings Eligible Wages
    Section 415 Eligible Wage Limit
    YTD - Current Calendar Year (based on Payment Date)
    401(k) + Roth Employer Match [USA] - Based (unprorated)
    Percent
    401(k) + Roth ER Match Calculated Percentage
  6. Define the deduction limits in the
    Limit
     section at the bottom of the
    Effective Dated
     tab:
    Value
    Balance Period
    Based On
    Include Current Value
    IRS Annual Contributions Limit Value (only looks at the specified dollar value / not at annual compensation
    YTD - Current Calendar Year (based on Payment Date)
    401(k) Total Contributions: EE + ER [USA]
    401(k) [USA]
    401(k) Roth
  7. Select
    Employer Paid Benefits [CAN USA]
     in the
    Groups
     field on the
    Non-Effective Dated
     tab.
  8. Click
    OK
    .
Workday calculates the employer match deduction based on the calculated employer match percentage.