Use this procedure to enter the percentage of gross pay that each of your employees wants to contribute to your company's 401(k) plan.
Note: This procedure assumes you have set up a 401(k) plan using the Payroll Setup Wizard. How do I set up a 401(k) plan?
Repeat this procedure for each employee that participates in your 401(k) plan.
If you subscribe to a Sage Business Care plan, during payroll entry, the employee's 401(k) contribution will be automatically calculated and subtracted from gross pay before calculating and deducting federal and state payroll taxes. The employee contribution amount will be recorded and tracked in the K401 payroll field. If your company matches the employee contributions, these amounts will be recorded and tracked in the K401_C payroll field.
If you don't subscribe to a Sage Business Care plan, the contribution details are for informational purposes only since payroll deductions will not be calculated. You will have to manually calculate and enter 401K amounts.