Company match employee setup example

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Important reminder!

Product support for Engagement CS is ending on September 30, 2020. See Engagement CS license expiration 2020 - frequently asked questions for more information.

Licenses for Payroll CS, Trial Balance CS, and Write-Up CS permanently expired on March 1, 2017.

Some processes documented in the Help & How-To Center are no longer applicable, due to the discontinuation of Creative Solutions Accounting.

It is a common practice for companies to match a portion of an employee's retirement deduction up to a specified maximum percent or amount of the employee's pay. For example, a company's policy could be to match 50% of an employee's 401(k) deduction up to 3% of that employee's gross pay. If an employee decides to deduct 4% of their gross pay for their 401(k) account, the company will match 50% of that deduction, thus contributing 2% of the employee's gross pay. However, if the employee chooses a 10% deduction for their 401(k), the company will contribute no more than 3% of their gross pay, the specified limit.

This procedure describes how to set up the company match (50%) and company match limits (3% of gross pay) for an employee who has chosen an 8% gross pay deduction for their 401(k).

  1. Choose Setup > Employees.
  2. Highlight the employee and click the Edit button.
  3. Click the Tax Withholdings & Deductions tab and then click the Item Properties button for the employee's 401(k) deduction item.
  4. In the Deduction Item Properties dialog, enter the appropriate 401(k) fixed amount or percentage. For this example, enter 8.00 in the Percent field.
  5. Click the Company Match tab.
  6. To specify the calculation method, select Percent of Deduction from the Calculation field drop-down list.
  7. Enter 50.00 in the Percent field to specify the company match percent amount set by the company.
  8. Click the Match Limits tab.
  9. Enter 3.00 in the Maximum percent of current gross field.
  10. Click OK to save the information and close the Deduction Item Properties dialog.


  • If no deduction limits are set at the employee level and the deduction is a retirement plan such as a 401(k), the application will use the global retirement plan limits. Global limits are set by choosing Setup > System Configuration > Payroll Tax Information > Federal and then clicking the Retirement Plan Limits button.
  • You can specify the employee match amounts either at the employee template level when you are setting up new employees, or you can enter the information for an individual employee using the Setup > Employees dialog. You also have the option to transfer company match information to all or selected employees via the Transfer Changes to Employees dialog.

Related topics

Federal Tax Information > Retirement Plan Limits dialog

Excluding clients and employees from the retirement plan Catch-up provision

Setting up an employee's 401(k) information

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