Drake Accounting®: How do I set up a 401(k) plan?
To set up a 401(k) plan in Drake Accounting®, you will need to create a deduction (employee portion) and complete the Employer 401(k) Match Options under Employees > Options if applicable.
To set up the employee portion, create the deduction using the following steps:
- Select the Employees menu, Deductions & Benefits, then select the Deductions tab.
- Select the new button ().
- Enter the Deduction Name and Account.
- Enter the applicable Amount, Ceiling, and State.
- In the Based On section, select Dollars/Cents or Percent from the droplist.
- Select the applicable options in the Deduct After Tax, Exempt From, Apply To, W-2 Box 12, and WH. Code sections.
- Select Save.
To set up the employer matching portion, follow the steps below:
- Select the Employees menu, then select Options.
- Enter the applicable percentages and limits in the Employer 401(k) Match Options section. For further information on the Employee Options screen, see Related Links below.
Note: The employer match will not be shown on the check or stub. This information will only be seen in Transactions and the 401(k) Listing report.