My employee wants to have 100 percent of her lump sum payment to go to her 401(k) deduction. How do I override the amount?
Be sure to explain to the employee that the lump sum is still subject to taxes. The balance may be contributed to an authorized deferred compensation plan. When setting up the HUZU1 (Lump Sum Payments for Terminations) screen, enter 0 in the DED field. Then do an override on the HUDU1 (Deduction Override) screen for the deduction and dollar amount. An employee must be set up for a 401(k) deduction before it will pay. For more information, see HUZU1 – Lump Sum Payments and HUDU1 – Employee Deduction Overrides in the USPS Process Guide.
Related Questions
- What should I do if an employee wants to make a voluntary deduction for his/her child support, or increase the amount withheld in excess of the Child Support Income Withholding Order/Notice?
- I have a terminated employee that wants a partial lump sum distribution and the remaining rolled into his spouses plan. Is that allowed?
- Why do I have reportable fringe benefit, CDEP and Lump Sum E on our Employee, ATO Payment Summary Report?
