Implementing a One-Time Large 401k Increase [Pro Software]

Implementing a One-Time Large 401k Increase [Pro Software]

This article guides you through the process of adding a one-time large 401k contribution to an employee's (EE) profile, without disrupting their ongoing 401k deduction schedule. This might be relevant in situations where an employee wishes to make a significant, one-off contribution to their 401k plan, in addition to their regular contributions.

Steps/Procedures:

  1. Setting Up the One-Time Deduction:

    • Navigate to the 401k deduction section in the employee's profile.
    • Create a new deduction specifically for this one-time 401k contribution. Make sure to consider the client's matching strategy, which might need manual adjustment for this unique contribution.
    • Set the start and end date for this deduction to match the desired pay date. For example, if the one-time contribution should be deducted on December 22, 2023, set both the start and end date to 12/22/2023.

  2. Adjusting the Ongoing Deduction Schedule:

    • After setting up the one-time deduction, return to the ongoing 401k deduction setup.
    • Adjust the start date of the ongoing deduction to the day after the one-time deduction. In our example, change the start date from 01/01/2023 to 12/23/2023.
    • Ensure that all other settings for the ongoing deduction remain as they were, to avoid any unintended changes to the employee’s regular deduction plan.

Result: With these changes, the system will recognize and process the one-time large 401k deduction on the specified date (12/22/2023). Immediately following this, the system will revert to recognizing the ongoing 401k deduction starting from 12/23/2023, ensuring a seamless transition between the one-time and regular contributions.

Troubleshooting:

  • Incorrect Deduction Amounts: Double-check the deduction amounts and matching strategy settings if the deducted amount doesn’t match expectations.
  • Deduction Not Applied: If the one-time deduction isn’t applied on the specified date, verify that the start and end dates were correctly entered.
  • Ongoing Deduction Errors: Ensure the start date for the ongoing deduction is correctly set to the day after the one-time deduction to avoid overlaps or gaps in deduction schedules.

Related Resources/Links:

    • Related Articles

    • PRO - How to Change your Direct Deposit

      Pro-Software: How to Change Direct Deposit/W4 Pro Software- Login Welcome to the Pro Software employee dashboard. This article will cover how to change, update, or add information for direct deposit and tax withholding preferences. Please note: Your ...

    • Pro-Software How to Clock in out and Edit Time

      This guide covers the basics of clocking in and out in PRO Software and provides steps for editing timecards. By following these instructions, employees can accurately track their hours and make necessary adjustments for any missed or incorrect ...

    • Pro-Software Initial Onboarding (Logging in for the first time)

      Initial Onboarding (Logging in for the first time) Pro Software- Login The Pro Software Employee Self-Service Portal provides a user-friendly, intuitive interface that allows you to keep track of your Employee information—including employment and pay ...

    • Creating a Deduction Shortfall for Employer Contributions [Pro Software]

      When managing financial transactions in Pro Software, particularly for retirement plans like Simple IRA, it's crucial to address shortfalls in employer (ER) contributions. This article guides you through creating a deduction to recover a missed ER ...

    • PRO: How to Request Time Off

      Introduction: Requesting time off is an essential part of managing work-life balance. In PRO Software, submitting a time off request is a straightforward process through your employee dashboard. This guide will walk you through each step, from ...