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Title: Flat Dollar Amount For Per Diem Emp
Description: DC plans that allow flat dollar amounts


mwingmgh17 - October 24, 2007 05:57 PM (GMT)
We currently have a DC --403b plan that allows all employees to contribute either a flat dollar amount or a percentage each payroll. The problem with this is when we get a per-diem employee that wants to contribute a flat dollar amount. The only way we make this work in the system is to actually make the employee hourly, enroll them, and return them to Per-diem status....creating "fake" history.

Anyone else face this issue? Are we the only ones that allow a flat dollar amount with a per-diem employee?

SAH - October 24, 2007 07:26 PM (GMT)
Sorry - I'm not familiar with exactly what's different about your per diem employees, because you shouldn't have to be changing status, etc. If you could post some more details, I'm hoping I can provide you with possible solutions?

Thanks

LaurenSH - October 30, 2007 05:40 PM (GMT)
I work with Michelle, who originated this thread -
When trying to enroll a per diem employee in a flat-dollar-contribution DC plan, an error message appears: "Employee contribution is greater than maximum percent." What we believe is happening is that the system is doing the math, multiplying the employee's FTE times the rate of pay, which results in a very small dollar amount. No matter how small a contribution the employee wishes to make, it's greater than his/her pay period wage amount and thus greater than the 100% s/he may contribute.
Our per diem employees are entered with an FTE of .001. Even with a $100/hour pay rate, the calculated pay period wage amount is only 10 cents. There's no time record connecting into the calculation, so there's just not enough $$...
So HRIS has to change the employee's FTE, the Ben Specialist enrolls the employee, and HRIS has to change the FTE back.



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