In Workday, 401(k) contributions are configured under which category?

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Multiple Choice

In Workday, 401(k) contributions are configured under which category?

Explanation:
401(k) contributions are treated as withholdings from an employee’s pay, not as earnings, taxes, or benefits. In Workday, this makes them part of the Deductions category, since deductions are the voluntary amounts withheld from gross pay that reduce take-home pay (such as retirement plan contributions, insurance premiums, etc.). The contributions can be set up as pre-tax (traditional) or after-tax (Roth) within that deduction framework, with the system applying the appropriate tax treatment. Employer contributions to the plan, if any, are configured separately under a different area (often as Employer Contributions).

401(k) contributions are treated as withholdings from an employee’s pay, not as earnings, taxes, or benefits. In Workday, this makes them part of the Deductions category, since deductions are the voluntary amounts withheld from gross pay that reduce take-home pay (such as retirement plan contributions, insurance premiums, etc.). The contributions can be set up as pre-tax (traditional) or after-tax (Roth) within that deduction framework, with the system applying the appropriate tax treatment. Employer contributions to the plan, if any, are configured separately under a different area (often as Employer Contributions).

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