Zenefits notifies you in the pay run if any workers are about to reach, or have reached, their annual 401(k) limit. There are a couple different scenarios in which you’ll see a warning message in the pay run.
If the worker has already reached the limit, Zenefits will stop deductions moving forward.
If the worker is nearing the limit, Zenefits will adjust the deduction so they don’t go over, then stop deductions moving forward.
If Zenefits needs clarification on the deductions, a payroll admin will be asked to edit deductions before approving.
- For example, if a worker contributes to both traditional and Roth but their usual deduction will take them over the limit.