The company wants to pay hourly wages automatically. Sage 100 uses the "auto pay" hours set up in the system to calculate the gross pay used to calculate the 401(k) instead of using the actual gross pay. For example, if the auto pay hours is 40 hours a week and the rate is $30 then the gross is $1200. If the 401(k) rate is 15% then the amount correctly calculates as $180. If the hours worked is changed to 20 the 401(k) amount stays at $180. It should be $90 (15% x (20 hours x $30/hr).
This is only a problem for employees who have a 401(k) deferral as a % of gross earnings instead of a set dollar amount. And it's only a problem if they work more or less than the "auto pay" 40 hours.
Has anyone seen this and if so, is there a workaround other than manually changing the 401(k) amount during payroll data entry?
------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Chauffeur, Chef, and Personal Assistant to Sprinkles
------------------------------