In an effort to ensure that contribution & loan repayments are error-free, ProgramPay applies a number validation rules to each contribution. Validation errors are flagged for review and action directly in the portal. In some cases, validations may identify unallowable contributions. In those cases, the unallowable contributions are flagged so that the sponsor can remedy the issue or return funds to participants, as appropriate.
In this article, we are are focusing on contributions processed using the ProgramPay portal. We will review the portal experience when validation errors occur. We will also provide a breakdown of the validations that occur with common resolution steps.
If your plan relies upon a payroll integration to submit payrolls, please click here to learn about managing and resolving validation errors that occur on integrated plans.
Validation errors on the Contribution Grid
ProgramPay evaluates contribution data for incomplete/invalid data directly in the contribution grid.
If you are manually entering contributions & loan payments into the contribution grid, required fields, as well as invalid data within a field will highlight red as you enter data. You won't be able to proceed in submitting your contribution until all red fields are eliminated.
If you've uploaded a contribution file into ProgramPay, fields that have triggered an error will be highlighted in red. An error counter will display the number of errors on the screen that require your action. The error counter will reduce as you resolve validation errors. As long as any errors are detected, the "Send and Validate" button will be grey and disabled.
On the contribution grid, the data is evaluated in multiple steps. You must work through all red highlighted fields, until the error counter is zero (0), then press the blue "Send & Validate" button. Each time you press "Send & Validate" the system evaluates the data for additional errors, until none remain.
For each error displayed in the grid, you have the option to resolve/correct the data issue directly on screen. If you don't have the information to resolve the error, you can choose to exclude the row instead.
If you choose to "Exclude Row" any contribution associated to that row will be unallowed and removed from the contribution. Any unallowed contributions will be summarized in the "Contribution Adjustments - Action Needed" section of the Review Submission page.
Sponsors are responsible for taking action to, either, 1) resolve the contribution and re-submit the contribution; OR 2) refund money to the employee
Summary of ProgramPay Contribution Grid Validations
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Validation |
Logic |
Portal |
Sample |
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Missing SSN |
SSN is missing from submission |
UI Validation occurs
Action Options: Sponsor must enter a properly formatted SSN or exclude row to continue. |
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Bad SSN format |
SSN is not properly formatted with 9 digits |
UI Validation occurs Action options: Sponsor must update to a properly formatted SSN or exclude row to continue. |
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Invalid SSN |
Invalid SSN: - all same digits - 0s in positions 1-3 or 4-5 or 6-9 - 123-45-6789 - 987-65-4321
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UI Validation occurs Action options: Sponsor must update to a valid SSN or exclude row to continue. |
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Duplicate SSN |
More than 1 record with the same SSN. |
UI Validation occurs Action options: Sponsor may only have one unique SSN record remaining to continue. At least one record must be excluded. |
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Missing names |
First name or last name is missing from submission (SSN and names are always required) |
UI Validation occurs Action options: Sponsor must enter a name or exclude row to continue.
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Unrealistic DOB |
DOB does not fall into 15 to 110 year old age range |
UI Validation occurs Sponsor must enter a valid date or select the current DB value to continue. |
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Bad DOB format |
DOB is not in a valid date format |
UI Validation occurs Sponsor must enter a valid date or exclude row to continue. |
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Invalid DOB/DOH combination |
DOB cannot be equal to or later than the DOH |
UI Validation occurs Sponsors must correct either the DOB or DOH so that the DOB is earlier than the DOH. |
COMING SOON! |
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Unrecognized Employee |
SSN on the submission does not match to anyone in the plan |
UI Validation occurs Sponsor must add the participant or exclude row to continue. |
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Bad DOH format - required field |
Date is not in a valid date format |
UI Validation occurs Sponsor may enter a new day, exclude the row OR if we have record of a DOH, that date will be presented as an option. |
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Bad DORH format Bad DOT format - Optional fields |
Date is not in a valid date format |
Message on validation: Invalid {type of date} date format 2 cases: when we had a date from before and when we did not UI Validation occurs - Must enter a valid date |
Example coming soon |
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Bad Zip and Bad State |
Zip or State fields are not properly formatted |
UI Validation occurs - Must enter a valid format for zip code (5 digit or 9 digits with or without dash) - Must be a valid 2 character abbreviation or full state name.
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Bad Zip Format |
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Mismatched loan payment |
Employee has active loans but they do not match to the loans stored in the database (*If a lump sum is provided, an algorithm tries to break up the total loan payment into valid combinations) |
UI Validation: - Employer needs to select a proper loan payment amounts |
Example Coming Soon |
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Bad contribution format |
A negative contribution. Other non-number values get normalized into Null Values with more than 2 decimal places get rounded to 2 decimal places |
UI Validation: ensure that a positive number is entered |
Example Coming Soon |
Unallowed Contributions
Once you've pressed the "Send & Validate" button, ProgramPay evaluates contributions or loan payments for validity versus a number of business rules, like annual contribution limits and loan repayment schedules.
Any validation errors discovered in this process will result in unallowed contributions. Those unallowed contributions will be displayed on the Unallowed Contributions page.
Each Unallowed contribution will be displayed, including:
- Participants Name (i.e Amanda Gordon)
- Business rule that was triggered (Annual Contribution Limit)
- Explanation of why the validation was triggered
- Original reported contribution amount
- Unallowed Contribution amount
- Remaining amount to contribute
On this page you will also find a summary of the overall impact to the full contribution, including:
- Total amount of the reported contribution submission
- Total unallowed amount
- Total amount to be transferred
Review all information on this page carefully, and make a plan to remedy each issue or return funds to participants, as appropriate. If you choose to complete the contribution without the unallowed contributions, press "Send & Validate" to continue to process the remaining contributions.
On the Review Submission page, you will see a final recap of the unallowed contributions in section called "Contribution Adjustments - Action Needed"
At any time in this process you can choose to cancel or edit the submission if you find that the unallowed contribution(s) was the result of a typo or other clerical error.
Summary of ProgramPay Unallowed Contribution Validations
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Validation |
Logic |
Portal |
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IRS limit exceeded |
Contributions that take a participant over their allowed annual contribution limit are not allowed. ProgramPay will identify that a contribution exceeds limits following this logic: 1) Calculate the maximum amount an employee can still contribute (IRS limit - YTD employee contribution) 2) Calculate employee unallowed amount (employee contribution on submission - maximum allowed employee contribution amount (including catch up) 3) Calculate the employer unallowed contribution amount (total employer contribution (discretionary match, safe harbor, profit share, after tax) - maximum allowed employer contribution |
UI shows the participant impacted by the validation, the amount of the original submission, the unallowed amount, and the remaining contribution. Sponsors reviews the validation, and either confirms the reduction and moves forward to process the remaining contribution; OR cancels or edits the contribution to eliminate the source of the validation error. |
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Unestablished self-directed brokerage accounts |
Certain participants have chosen to have self-directed brokerage accounts. ProgramPay will validate the participant's settings to confirm the availability of the required self-directed account. If the requested self-directed brokerage account is not ready to accept contributions, the contributions will not be allowed. This applies to both Roth and non-Roth contributions. |
UI shows the participant impacted by the validation, the amount of the original submission, the unallowed amount, and the remaining contribution. Sponsors reviews the validation, and either confirms the reduction and moves forward to process the remaining contribution; OR cancels or edits the contribution to eliminate the source of the validation error. |
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Invalid loan payments |
A participant has a loan payment on the submission but no active loans in the database |
UI shows the participant impacted by the validation, the amount of the original submission, the unallowed amount, and the remaining contribution. Sponsors reviews the validation, and either confirms the reduction and moves forward to process the remaining contribution; OR cancels or edits the contribution to eliminate the source of the validation error. |