Your employer matches dollar-for-dollar 401(k) retirement savings contributions until employees contribute 5% of their salary. How do you configure an employer match in Workday?
A.
Once the plan is configured, work with your payroll team to configure a dollar-for-dollar match.
B.
Work with the retirement plan provider to send contribution matches via integration.
C.
Input 5% on the Employer Contributions section on the benefit plan setup.
D.
Create a separate 401(k) match plan and configure a cross plan dependency rule to ensure the election of the 401(k) match plan.
The correct answer is D because in Workday, employer match contributions for retirement plans are typically configured using a separate match plan rather than being embedded directly within the employee contribution plan. This design allows for greater flexibility and control over eligibility, contribution rules, and plan dependencies. By creating a distinct 401(k) match plan, administrators can define specific employer contribution logic, such as dollar-for-dollar matching up to a defined percentage, and then link it to the primary 401(k) savings plan.
A cross plan dependency rule ensures that when an employee elects the base 401(k) plan, the corresponding employer match plan is also triggered or made available. This approach supports accurate enrollment behavior and maintains clear separation between employee and employer contributions for reporting and processing purposes. Option A and B incorrectly shift responsibility outside Workday configuration, while Option C oversimplifies the setup and does not reflect how employer matching logic is structured within the system. Therefore, using a separate match plan with dependency rules is the correct and standard approach.
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