13 Dec 2024

Prebuilt HCM Report to Audit Employee’s 401K Contribution Limit: Ensuring Compliance and Preventing Penalties

Traditional 401K is a popular retirement saving plan provided by the employer, helping employees to save for their retirement years. However, each year, a contribution limit is set for the 401K plan, and the payroll deduction must adhere to this limit. Employees who exceed this limit may face penalties during tax filing, making it essential to track and audit 401K contributions.

Audit payroll for 401K contributions with HCM reports to ensure compliance and avoid tax penalties.

Report Description: DataTerrain’s Prebuilt Report for 401K Contribution Limits Audit

DataTerrain’s prebuilt payroll audit tool allows employers and employees to quickly identify those who have contributed over the established 401K contribution limits for the year. By running this automated payroll audit, employers can ensure compliance and avoid tax-related issues.

Parameters for Running the Report:

This HCM payroll report can be run for a specific date range, such as a financial year, to check the employee contribution verification for that period. The available parameters for the report are as follows:

Effective Start Date/End Date
Person Number
Legal Employer
Payroll

The report is available in both HCM Extract and BIP report formats, which can be executed via a checklist or the BI Publisher Catalog.

Output: Key Details for 401K Contribution Tracking

The output of the report includes critical information regarding person numbers, assignment status, 401K contribution percentages, and termination dates. This ensures complete transparency and payroll data verification, which helps businesses stay compliant with tax compliance payroll audits.

The report can be delivered in Excel format, but it also supports PDF/CSV rendering for better payroll reporting and tax compliance.

Scheduling for Ongoing Audits

To keep track of employee contribution limits regularly, payroll teams or individual users can schedule the report to run quarterly or annually. This helps them stay on top of potential issues before their annual tax filing process, ensuring that no employee exceeds the 401K contribution limit.

DataTerrain’s Expertise in Payroll and Benefits Compliance

Ensuring compliance with 401K contribution limits is vital for avoiding penalties and maintaining a smooth payroll process. DataTerrain’s Automated BI Migration offers an advanced solution to streamline this process, providing accurate reporting and real-time insights. With our prebuilt HCM reports and automated migration services, organizations can efficiently audit 401K contributions, enhance payroll compliance, and focus on strategic growth.

With years of experience in automated payroll audits and employee benefits compliance, DataTerrain has helped more than 270+ customers in the US. Our team is ready to assist with HCM report needs, ensuring accurate payroll data verification and a seamless process for tax audits. We offer flexible working hours and do not require long-term binding contracts. Contact DataTerrain today to harness the power of automated BI tools for accurate reporting and seamless payroll management