Matching Contribution Process
1. How does the matching process work?
- When matching is enabled and set to "Match to Maximum," the company will match a worker's contribution percentage. The matching starts from the worker’s starting percent and continues up to the maximum percentage set by the company.
- Workers can contribute more than the company’s set maximum, but the company will only match up to the defined maximum.
2. Does the company’s matching rule apply to existing workers?
- No, the company’s matching settings are only applied to new joiners. However, existing workers can choose to have the same contribution matching rules applied to them individually.
3. What happens if a worker has individual settings?
- If a worker has individual contribution settings, the company settings are ignored for that worker. Company settings are only applied when no worker-specific settings exist.
4. Can existing workers opt for company contribution matching rules?
- Yes, existing workers can individually choose to have the company’s contribution matching rules applied to them.
5. Will company settings automatically override a worker’s individual settings?
- No, once a worker adds their own contribution settings, the company settings will no longer apply.
Terms Explanation
Match to Maximum:
- This term refers to the company’s policy of matching a worker’s contributions only up to a pre-defined maximum percentage. Contributions beyond this limit will not be matched by the company.
Starting Percentage:
- This is the minimum contribution percentage a worker must reach for the company to begin matching. If a worker’s contribution is below this threshold, the company will not match any contributions.
Maximum Matching Percentage:
- This is the highest percentage up to which the company will match a worker’s contributions. Any contributions exceeding this percentage will not be matched by the company.
