Oracle Payroll enables you to set up employer matching for your organization. The application default is that for every dollar that an employee contributes up to 6% of their pay, the employer matches 50 cents. You can adjust this criterion or remove employer matching altogether.

You establish employer matching from the Globals window.

Prerequisite

• You must link the appropriate deduction element to employee assignments before you can enter values for employer matching variables into the Globals window.

   To set up employer matching:

1. Enter the limit of the employer match in the Value field for the EMPLOYER_MATCH_LIMIT variable.

   This decimal value represents the amount of the employee's contribution (expressed as a percentage of pay) that the company will match. The default entry for this field is .06 (up to 6%).

2. Enter the rate of the employer match in the Value field for the EMPLOYER_MATCH_PCT variable.

   This is a decimal value that represents what percentage of each contributed dollar the company will match. The default entry for this field is .5 (50% of the amount an employee contributes).

3. Save your work.

   Note: The default Employer Match Formula does not take catch-up contributions into account. If your plan provides employer matching for catch-up contributions, change your Employer Match formula.

   Note: For the Def Comp 401k Catchup element, a default separate employer formula is created when the catch-up option is selected along with employer match option.