Washington 12/05/2016 @ 12:08PM 51,084 views. How Defense Secretary James 'Mad Dog' Mattis Will Remake The Pentagon. President-elect Donald J. Trumpâs disclosure that he will seek to name retired Marine Corps General James N. Mattis as the next Secretary of Defense portends big changes at the Pentagon.
For example, if the company agrees to match 65 percent of employee contributions, divide 65 by 100 to get 0.65. 4. Multiply the matching rate by the smaller of the total contributions made by the employee or the maximum contribution subject to matching to calculate the employer matching contribution. Finishing this example, multiply 0.65 by $4,200 to find the companyâs matching contribution equals $2,730.
Variations among 401(k) matching contributions are likely. A common employer matching formula is 50% of 401(k) employee deferral contributions, based on a maximum employee deferral rate of 6% of compensation. The following should always be considered when determining the match:1. The anticipated effect of a match with regard to attracting and retaining valuable employees.mployers must first determine whether they should provide a matching contribution on employee deferral contributions and, if so, the amount. Many experts advise beginning with no match or a low one since a 401(k) matching contribution can easily be increased but may be difficult to reduce.