401(k) is an employer-sponsored retirement account to which employees can have a portion of their income withheld and placed into the account each pay period. They cannot withdraw from this account until after the age of 59½; otherwise, they are subject to an early withdrawal penalty. Other similar plans are 401K, 403B, Roth 403B, IRA, or Roth IRA.
Employers can match what the employee is contributing to their 401(k) and some other plans. Usually this match is limited to 3-4% of the employee’s gross pay per paycheck.
If you want to offer a retirement benefit to your employees, you simply need to create the deduction codes and then add the deduction to the employee's profile.
To manage your employees' 401(k) accounts, Fingercheck has partnered with Human Interest, a full-service 401(k) and 403(b) provider. Contact your Fingercheck sales representative for more information.
Create retirement deduction codes
Log in to your Fingercheck account as an Administrator.
Click the SETUP tab > Payroll > Deductions.
Click Add.
A list of predefined deductions appears.Click the Add button for the type of 401(k) plan you want to use:
401K: Allow employees to select a flat amount to be deducted from their gross wages.
401K %: Allow employees to select a percentage to be deducted from their gross wages.
Alternatively, you can select one of these options: Roth 401K, 403B, Roth 403B, IRA, or Roth IRA.
(Optional) In the pop-up window that appears, turn on the Employer Match toggle if you want to match your employees' 401(k) contributions. Then, in the Match Percent field, enter a number (such as 4 for 4%) to specify the percentage of the employee's gross pay you want to match.
Click Continue.
Click OK in the confirmation pop-up window.
A 401K deduction code is added. If you decided to match, a 401K Employer Match deduction code is also added.
Add the retirement deduction to an employee's profile, as described below.
Use the steps above to set up a retirement deduction for employee catch-up contributions.
Add the retirement deduction to an employee's profile
Log in to your Fingercheck account as an Administrator.
Click the EMPLOYEES tab, and click on the employee's number to open the employee's profile.
Click Payroll > Deductions.
Click Add.
In the Add Employee Deduction pop-up window, select 401K - 401K $ (flat amount) or 401K - 401K % (percentage) from the Deduction Type drop-down list.
Do not select the 401KM - 401K Employer Match option. The system automatically takes care of the employer match if you set it up.
If you set up your 401(k) plan for a flat amount to be deducted:
In the Amount field, enter the amount the employee would like to deduct from each paycheck for their 401(k).
Leave the Rate field empty.
If you set up a 401(k) plan for a percentage of gross wages to be deducted:
In the Rate field, enter the percentage that the employee would like to deduct from each paycheck for their 401(k).
Leave the Amount field empty.
Leave the other fields as is (unless you want to modify the Start Date).
Click Save.
Add more than one type of retirement to Fingercheck
If you want to offer other retirement savings plans, you can also select the Roth 401K, 403B, Roth 403B, IRA, and Roth IRA options as described in the following procedure.
Log in to your Fingercheck account as an Administrator.
Click the SETUP tab > Payroll > Deductions.
Click Add.
Click the Add button for the type of plan you want to use (Roth 401K, 403B, Roth 403B, IRA, or Roth IRA).
In the pop-up window that appears, do not turn on the Employer Match toggle if you turned it on for another plan on the Add Deduction page (the procedure above).
Click Continue.
Click OK in the confirmation pop-up window.
A deduction code is added. If you decided to match, an Employer Match deduction code is also added.
Trigger the employer match to this new retirement plan you are adding:
Return to the SETUP tab > Payroll > Deduction page, and click the Edit icon (pencil) for the new deduction you created.
From the Trigger Other Deduction drop-down list, select an Employer Match option (for example, 401KER - 401K Employer Match).
Click Save.
Edit the existing accumulator for this additional retirement plan you are adding:
Go to the SETUP tab > Payroll > Accumulators.
Click the Edit icon (pencil) for this additional plan.
In the Accumulator Rules section, click Add.
From the Accumulator Type drop-down list, select DeductionAmount.
From the Code drop-down list, select the second retirement plan deduction.
From the Accumulator Action drop-down list, select Add.
Click Apply.
Click Save.
Now both deductions will trigger the employer match.
Repeat these steps for any other retirement plans you want to add.
Note: The default 401(k) Employer Match is triggered only by the traditional 401(k), not the Roth 401(k). You can do an employer match with Roth 401(k), but you must manually point it to the employer match created by the traditional 401(k) or create one.
Add a 401(k) catch-up deduction code
Log in to your Fingercheck account as an Administrator.
Click the SETUP tab > Payroll > Deductions.
Click Add.
A list of predefined deductions appears.
Click Add to add the predefined deduction template for the type of retirement catch-up.
Use the toggle switch to indicate if catch-up contributions qualify for employer match, and enter the maximum percent the employer matches to the 401(k).
Click OK to complete adding the catch-up deduction code.
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