How do I add a 401(k) benefit plan?
Last modified 6/18/2020 8:21:49 AM EST | Added by Paywow Team

Through a 401(k), employers can contribute to their employees' retirement savings. Employees can also contribute to this plan. To learn more about how PayWow handles various benefit plans, click here.

Traditional 401(k) contributions are made on a pre-tax basis, and taxes are paid upon withdrawal.

Here's how to set up a 401(k) benefit plan for employees:

1. Go to Benefits and click Set up New Benefit.
2. Select 401(k) (pre-tax) under Retirement and Savings.
3. On the Benefit Details page, 
   1. Enter the Benefit Name, Contribution Type, and Maximum Contribution.
   2. Select either Percent of Gross Pay or Fixed Dollar to Dollar Match as the contribution type.
   3. Select Yes or No for Discretionary Contribution.
   4. Click Save & Continue.
4. On the Select Employee(s) page, 
   1. Select Employee(s) to add to the benefit plan.
   2. Click Save & Continue.
5. On the Employee contribution page,
   1. Select Yes or No to indicate whether the employee opted to contribute.
   2. Select Catch-up Limit Type, if the employee is 50 years old or older
   3. Select % (Percentage) or $ (Dollar) to enter the contribution amount per pay period.