What is the retirement report?
Most retirement plan providers support the ability to upload a report like this one from us in order for them to know what they need to do on their end (for example, how much to pull from your account, which employees are new at your company, and so on).
Please double check to make sure the report is correct. You will probably have to make some adjustments before you upload the report to your provider. In particular, the columns may not be in the exact order your provider requires.
How do I use the retirement report?
You can select the date range to cover the relevant payments. Each payment between the two dates will be listed as a separate line item.
Calculate Matching / Safe Harbor / Non-elective
You can optionally add in a calculated match or contribution if applicable.
The three contribution types offered here are:
- Discretionary match: this is the common discretionary match that your company can adjust whenever it wants.
- Safe Harbor match: this is when your company commits specifically to offering a Safe Harbor match.
- Safe Harbor non-elective contribution: this is when your company commits to offering a Safe Harbor non-elective contribution of 3% (or more) of compensation, regardless of 401(k) deferrals.
You can read below for more information about how the calculations work.
Your Retirement Plan Provider (Optional)
We know the fields that some of the more common providers we see require, and we can pre-select those fields for you.
The providers we can do this for are currently:
- Human Interest (formerly Captain401)
(Keep in mind that we may not have all the information the provider needs, their requirements may change, and the order may not be exactly what they need so be sure to check the files before uploading.)
Census Information and Payroll Information
If your provider is not listed, you can select whatever particular fields your provider may need. The fields are split into two groups: census information (employee personal details) and payroll information (details about how each employee’s payments and contributions).
The page will remember whatever you selected, so next time you have to run the report, all you have to do is change the date range.
How does “Calculate Matching / Safe Harbor / Non-elective” work?
If your company contributes to employee retirement plans, we can calculate what your match (discretionary or Safe Harbor) or Safe Harbor non-elective contribution should be and add the column to your report so you don’t have to calculate it yourself. If you use this feature, this page would remember your settings so you don’t have to re-enter them.
If your company uses or has used an integrated 401(k) provider with Justworks (Slavic), we have the actual contributions that your company has made and you don’t need to use this tool to calculate matching for you. Instead, you will see the ability to add fields reflecting matching or non-elective contributions under "Payroll Information."
Note that we don’t differentiate between Safe Harbor or discretionary matching in our system for Slavic, so that information will show up in a general “Match” column (instead of a column for the specific kind of match, which is what is generated by the calculator tool).
For “Discretionary Match” and “Safe Harbor match”
All 401(k) matches take the following format:
A% of the first B% of employees’ salaries, with an optional second tier of C% of the next D% of employees’ salaries.
For example, a company might provide a match of 100% of the first 3% of employees’ salaries and 50% of the next 2% of employees’ salaries.
This means that the company would match 100% of employee deferrals up to a maximum of 3% of an employee’s salary.
But if the employee was deferring the equivalent of 4% of their salary, the company would also match 50% of the next 1%, in effect matching 3.5% of that employees’ salary.
If the employee was deferring the equivalent of 5% of their salary, the company would match 100% of the first 3% and 50% of the next 2%, in effect matching 4% of the employees’ salary.
Be sure to check the calculations on the generated report before uploading or using the information in it.
For Safe Harbor non-elective
Safe Harbor non-elective contributions are simpler. They are not a match but simply a percentage of each employees’ salary that your company contributes to each employee’s paycheck regardless of whether the employee is deferring or not themselves.
If you use this setting, the column would calculate the percent you put in of each employees’ gross pay during the date range.
The most common Safe Harbor non-elective contribution is 3%.
What about loan repayments?
Right now, we do not have the ability to track 401(k) loan repayments as a specific deduction type. As a work-around, you may use the “401(k) (after-tax)” deduction type.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.