Audit: Review the Unused Deduction Report using Payroll Quickview prior to approving the payroll. Tip: review the last page with totals. Look for 401k and any other benefits and direct deposits that should be deducted. Identify which employees make up the totals by scanning the report and reviewing the reason codes. Direct deposit reason code “Account Prenoted” – Okay Direct deposits not deducted and no reason code would need to be reviewed. Medical benefits – could be okay if employee is on LOA 401k – This would be an issue and this employee should be reviewed 401k Loan – if reason code is “Goal Deduction is reached” – Okay If not, review why the loan was not deducted. Tip: You could just scan down the report reason code column and look for blanks and review employees pay. Make necessary corrections. Unused Deduction Report Deduction Reason Code Review Notes Direct Deposit Account Prenoted NO Direct Deposit None YES 401k Deduction None YES 401k Loan Goal Deduction Reached NO 401k Loan None YES Medical Benefits None YES Employee could be on LOA Correction: If issue was discovered prior to processing the payroll by auditing the Payroll Quickview, make necessary corrections and request another Payroll Quickview. If the issue is discovered soon after payroll has been processed, it is preferred that the check be voided and enter it correctly in the next payroll. In addition, contact the 401(k) benefits manager in order to do an adjustment before the file is sent to Vanguard. If the issue is discovered months after the payroll has been processed, after notify the 401(k) benefits manager that an adjustment to the match memo code M will appear on the next payroll. The adjustment needs to be made on the Memos panel (Autolink Payroll Processing, Entering Deduction Detail, Entering Memos). Enter memo code “M” and the appropriate adjustment. Negative number to subtract amount Positive number will add more to the match
Audit: Review the Unused Deduction Report using Payroll Quickview prior to approving the payroll. Tip: review the last page with totals. Look for 401k and any other benefits and direct deposits that should be deducted. Identify which employees make up the totals by scanning the report and reviewing the reason codes. Direct deposit reason code “Account Prenoted” – Okay Direct deposits not deducted and no reason code would need to be reviewed. Medical benefits – could be okay if employee is on LOA 401k – This would be an issue and this employee should be reviewed 401k Loan – if reason code is “Goal Deduction is reached” – Okay If not, review why the loan was not deducted. Tip: You could just scan down the report reason code column and look for blanks and review employees pay. Make necessary corrections. Unused Deduction Report Deduction Reason Code Review Notes Direct Deposit Account Prenoted NO Direct Deposit None YES 401k Deduction None YES 401k Loan Goal Deduction Reached NO 401k Loan None YES Medical Benefits None YES Employee could be on LOA Correction: If issue was discovered prior to processing the payroll by auditing the Payroll Quickview, make necessary corrections and request another Payroll Quickview. If the issue is discovered soon after payroll has been processed, it is preferred that the check be voided and enter it correctly in the next payroll. In addition, contact the 401(k) benefits manager in order to do an adjustment before the file is sent to Vanguard. If the issue is discovered months after the payroll has been processed, after notify the 401(k) benefits manager that an adjustment to the match memo code M will appear on the next payroll. The adjustment needs to be made on the Memos panel (Autolink Payroll Processing, Entering Deduction Detail, Entering Memos). Enter memo code “M” and the appropriate adjustment. Negative number to subtract amount Positive number will add more to the match
Handout%20_5%20401k%20Match%20Issue%20with%20add%20back.docx