Creating a Deduction Set — Override Group Cap tab

The Deduction Cap Group feature allows you to create groups of deductions that will be considered together when applying the required caps. For example, this feature makes it possible to correctly cap the deductions for an employee contributing to more than one TSA plan, as required by the IRS.

The deduction cap group can be overridden — for example, for an employee over age 50 with over 15 years of service who wants to use the TSA service catch-up provision. The override is then used during payroll processing along with the annual cap designated in the cap group.

Note: You don't need to override the TSA deduction group cap if the employee is only eligible for the age catch-up because it's handled automatically. It's only necessary to override the group cap if the employee is also eligible for the service catch-up.

Click here for more information about Deduction Cap Groups.

Add a group cap override

  1. While in Payroll > Deduction Assignment > Deduction Set Detail on the Override Group Cap tab, click the Add button at the top of the tab. The Add Group Cap Override window opens in a popup.

  2. Select the Cap Group Name from the pull-down list. Deduction cap groups are maintained in Payroll Configuration > Deduction Cap Groups tab.

  3. Enter the Employee Overridden Cap amount. Enter the total cap amount. For example, in 2019 the basic cap is $19,000, the catch-up contribution cap is $6,000, and the service cap is $3,000, so you'd enter $28,000 in this field.

  4. Click Save to save this override and return to the Deduction Set Detail window,
    OR click Save and Add. to save this override and add another.

When finished creating the employee's deduction set, either click Save or Save and Approve.

 

Return to Creating an Employee Deduction Set

Return to Deduction Assignment Overview