How to Calculate the Employer Match on a Deduction Not Linked to an Abra HR Benefit

Sometimes a benefit deduction is created that is not linked to a benefit on the HR side of Abra Suite. If not linked, there are special precautions and steps to take to ensure the correct calculation of the benefit that is provided to the employees. The instructions below show how to set up the match within the Payroll deduction itself since it is not linked to HR.

Example: Employer will match 50% of the employee’s 401(k) contribution up to 3% of the gross salary.

From the Activity Center, select Payroll, Rules and Deduction Codes. Click the plus (+) or More to detail the Deduction Code and click the Employer Match tab.

HR Benefit Code: Not Linked
Dollar/Percent Match: Percentage - Base or Percentage - Gross
Employer Match: 50
Employer Max Contribution: 1.5

To determine the Employer Max Contribution, If the employer Matches 50% up to 3%, multiply .50 * 3=1.5

For pay period earnings=$810.14, Employer Match calculates: $ 810.14 *.03 * .50=$12.15

(Note: If either selection: Percentage - Base or Percentage - Gross is made for Dollar/Percent Match, the match will calculate on the amount of earnings based on the earnings selected on the Earning Basis tab of this deduction)