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Forums Lawson S3 HR/Payroll/Benefits

401(k) Match Issue

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Chris Puckett
Basic Member
Posts: 10
Basic Member
4/5/2006 4:43 PM
    I hope someone out there has figured out a workaround for this Lawson limitation.

    We have some employees that receive more pay in the first of the year (bonus, commissions, whatever) then they might later in the year. Thus, these employees contribute heavier to their 401(k) in the first quarter to where their entire pre-tax limit might be hit after a few months.

    Problem comes with the company match and how Lawson handles it. Someone that contributes 15k in three months would get less match then someone who contributes 15k spread evenly over 26 pay periods (we pay bi-weekly).

    If you have this issue, what workarounds have you done to counteract the Lawson limitations (match based on paycheck-by-paycheck contribution).

    Regards,
    Chris
    DEBBIE SMITH
    New Member
    Posts: 3
    New Member
    9/28/2006 10:39 AM

      What solution were you able to do as a workaround? We are having the same issue...thanks.
      Chris Puckett
      Basic Member
      Posts: 10
      Basic Member
      10/2/2006 4:41 PM
        There were some manual workarounds, but it was too intensive and we did not want to modify core code. So, we took a simplified approach and are pulling records (copying) from Lawson during each payroll run, running those through some custom code to calculate and store company match amounts. Basically, all company match details will reside outside of Lawson. Plus, we'll also store employer paid amounts so that we have all the detail in one place (to match against amounts we wire to our 401(k) provider).
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