Combined annual election is over the plan limits by less than $1
Warning Code: EN105
Warning Message: Combined amount of Employee Election and Employer Election may exceed the plan maximum or IRS limit
Error code EN036 prevents an account with combined employee and employer annual elections from going over the plan limit. However, if the exceeding amount is less than $1, the system will round it down. For example,
- IRS limit for 2024 FSA is $3,200
- Your company sets the FSA limit to $3,000
- John elects to contribute the maximum $3,000 amount. John is on a bi-weekly pay schedule with a pay period election of $115.39.
- Your file vendor uses pay period election times the number of payrolls as the annual election, sending $115.39*26= $3,000.14 in the Employee Election field.
- Instead of erroring the record out, Forma will round down the number to $3,000 to ensure the account is not overfunded.
- This warning flags that $3,000 is the correct annual election to help prevent contributions over the annual limit