How this number is made
A percent deferral is easy to agree to and harder to picture on one check. This divides the year’s deferral by the number of checks. It does not apply the annual dollar cap. If the percent would put you over the cap, payroll will stop, and this page will not.
- Every two weeks is 26 checks. Twice a month is 24.
- The match is not deducted from you. It is the 401(k) match page.
Formula
Each check = salary × percent ÷ number of checks.
Worked example
With the figures already in the form, deferred each check is $258.46.
Questions
Does a raise change the dollar amount?
If the deferral is a percent, yes. Type the new salary.
What if I hit the cap in November?
Later checks will have a smaller deferral or none. This page spreads the percent across every check.