Updates to benefit deductions on supplemental pay

Updates to benefit deductions on supplemental pay

All supplemental payments eligible for benefit deductions will now apply 401(k) deductions by default. This update eliminates the need to manually select and remember to deduct 401(k) contributions on supplemental payments and encourages employees to contribute to their 401(k) on all eligible payments.

Admins can still apply all benefit deductions to supplement payments if they wish, and admins using an external 401(k) provider can choose to deduct nothing if needed. We’ve updated the UX in Justworks to make these benefit deductions easier to understand, and the updates can be seen in the “Taxes & deductions” section when scheduling a supplemental payment.

As always, we’re here 24/7 if you have any questions.