Entering a 401(k) Employer Match as a History Adjustment

Overview

This article explains how to enter a missed or incorrect 401(k) employer match using the Manual/History Payroll Wizard. Two scenarios are covered: updating the employee record only (when the match has already been paid to the vendor) and updating the employee record while also including the amount on the next vendor payment. Use this guidance when correcting or backfilling 401(k) employer match amounts on an employee's record.

When to Use This Process

  • A 401(k) employer match was missed on a prior payroll and needs to be added to the employee's record.

  • A 401(k) employer match was entered incorrectly and needs to be adjusted.

  • The match amount needs to be added to the employee's record and/or included on the next vendor payment.

Scenario 1 — Update the Employee Record Only (Match Already Paid)

Use this scenario when the 401(k) employer match has already been paid to the vendor outside of the system, and you only need to update the employee's history record so it reflects the correct match amount.

How to Enter the History Record (Match Already Paid)

  1. On the Company Menu, select Manual/History Payroll Wizard.

  2. Define the Default Information for the adjustment:

    • Payroll Type: History

    • Tax Status: Paid

    • Deduction Status: Paid — this updates the Employee Record only.

  3. Enter the Pay Period Information (Period Start, Period End, and Pay Date).

  4. Highlight the employee to be adjusted and select Next from the ribbon.

  5. On the Deduction Screen, enter the amount in the Company Match column. The Payroll Deduct column will default to Paid.

  6. Complete the entry by selecting Next, then Save Payroll. This will add the amount to the Employee Record.

Scenario 2 — Update the Employee Record and Include the Amount on the Next Vendor Payment

Use this scenario when the 401(k) employer match has not yet been paid to the vendor and you want the system to collect the amount and include it on the next vendor check produced during a live payroll.

How to Enter the History Record (Match to Be Included on Next Vendor Payment)

  1. On the Company Menu, select Manual/History Payroll Wizard.

  2. Define the Default Information for the adjustment:

  3. Enter the Pay Period Information (Period Start, Period End, and Pay Date).

  4. Highlight the employee to be adjusted and select Next from the ribbon.

  5. On the Deduction Screen, enter the amount in the Company Match column. The Payroll Deduct column will default to New.

  6. Complete the entry by selecting Next, then Save Payroll. This will add the amount to the Employee Record and include the amount on the next vendor check produced.

Choosing the Correct Deduction Status

The Deduction Status determines whether the system creates a corresponding vendor payment obligation:

  • Paid — the amount is added to the Employee Record only. Use this option when the match has already been paid to the vendor outside of the system.

  • New — the amount is added to the Employee Record AND the system will include it on the next vendor check produced during a live payroll. Use this option when the vendor still needs to be paid.

Tips

  • Confirm whether the match has already been paid to the vendor before selecting a Deduction Status — this determines whether to use Paid or New.

  • Double-check the Pay Period Information dates so the adjustment applies to the correct pay period.

  • Review the Deduction Screen carefully before saving so the amount is entered in the Company Match column and not another field.

  • Always select Save Payroll to commit the adjustment; leaving without saving will discard the entry.

Key Takeaways

  • Missed or incorrect 401(k) employer match amounts are corrected through the Manual/History Payroll Wizard as a History adjustment.

  • Use Deduction Status Paid to update the Employee Record only when the match has already been paid to the vendor.

  • Use Deduction Status New to update the Employee Record and include the amount on the next vendor check produced.

  • The match amount is entered in the Company Match column on the Deduction Screen.

  • Always finish with Save Payroll to commit the changes.