Employee Management

Pension Plan Contribution Pay Codes Grouping

As of 2025.1, selected pension plan contribution pay codes in SuitePeople U.S. Payroll are now grouped by their annual limits. Each group has a predefined deduction limit, representing the maximum amount that can be deducted from an employee's pay for pension contributions.

The paycheck can't be committed if the total deduction amount exceeds the individual pay code or group deduction limit. Adjustments must be made before committing the paycheck to ensure compliance with the relevant regulations.

The following group limits are in effect as of January 1, 2025:

This enhancement is part of ongoing efforts to ensure compliance with the Secure Act 2.0 regulations and streamline your payroll processes.

For more information, Pension Plan Contribution Pay Codes.

Download Form W-2 and Form W-2 C

For all users:

In NetSuite 2025.1, SuitePeople U.S. Payroll employees can now download their Form W-2 and Form W-2 C for the current year as a password-protected PDF document. The PDF document can also be downloaded without a password. Employees need to access the Employee Center role to be able to download the Form W-2 and Form W-2 C.

For more information, see Download Form W-2 and Form W-2 C.

For users with Administrator permissions in NetSuite:

In NetSuite 2025.1, SuitePeople U.S. Payroll administrators can now download Form W-2 and Form W-2 C for employees. The forms can be downloaded as a password-protected PDF document from the Employee record. The PDF document can also be downloaded without a password.

For more information, see Download Form W-2 and Form W-2 C for Employees.

457(b) Catch-Up Contributions for Employees Aged 60 Through 63

To comply with Secure Act 2.0, SuitePeople U.S. Payroll version 2025.1.14 now supports 457(b) catch-up and special 457(b) contributions for employees aged 60 – 63.

In the latest version, you can now assign the following 457(b) catch-up payroll items to an employee record:

• Govt. EE 457(b)-Catch-Up-60 – 63

• Govt. EE 457(b) Roth-Catch up 60 – 63

• Govt. EE 457(b) -Catch-up, Additional -3 Years to Retirement-ROTH

When assigning payroll items to an employee record, note that the automatic catch-up calculation feature does not apply to Govt. EE 457(b) -Catch-up, Additional -3 Years to Retirement-ROTH and Govt. EE 457(b) -Catch-up, Additional -3 Years to Retirement payroll items. The system calculates catch-up contributions for these payroll items even if the employee has not yet reached the annual deferral limit. Consult your plan sponsor for further details on this requirement.

This enhancement ensures compliance with relevant regulations and helps streamline your payroll processes.

For more information, see Setting Up Automatic Catch-Up Age 60 – 63 Calculations.

Support for 401(k) Retirement Plan in Catch-Up Age 60 to 63 Contributions

Previously, when deriving higher catch-up contributions for individuals aged 60 – 63, you first needed to create a payroll item group. You then had to derive the catch-up age 60 – 63 contributions to calculate the correct amounts for payroll items associated with the new payroll item group.

In SuitePeople U.S. Payroll version 25.1.13, you can now include the following payroll item pay codes when deriving contributions from a 401(k)-type retirement plan:

• 401(k) Catch-Up 60 – 63

• 401(k) Roth Catch-Up 60 – 63

This enhancement reduces the need for additional configurations, helps you better manage your employees' retirement plans, and ensures compliance with relevant regulations.

For more information, see Deriving a Payroll Item from a Retirement Plan.

Change in Louisiana R-1300 Withholding Tax

Effective January 1, 2025, Louisiana has a new withholding tax formula. To comply with the state's new tax agency requirements, SuitePeople U.S. Payroll version 24.02.16 is introducing the following changes in the employee record:

• New filing status options for Louisiana Withholding – The following filing status options support the updated R-1300 form in NetSuite for Louisiana Withholding tax:

  • No Deduction

  • Single or Married Separately

  • MFJ or Qualified Surviving Spouse or HOH

  You can select these new options under the Taxes subtab of the employee record.

• Removal of Dependent Credits (Block B) Field – In the updated Louisiana R-1300 form, allowances are no longer supported. Any data previously entered in this field before version 24.02.16 no longer impact the withholding tax calculation for paychecks processed from January 1, 2025 onward.

For more information about setting up tax withholding in NetSuite, see Setting Up Other Tax Withholdings and Allowances.