Matching contributions made by an employer are NOT counted toward an employee’s IRS annual deferral limit. Even if an employee contributes the maximum amount each year, the employer's matching contributions are in addition to these limits. Non-elective contributions are made to eligible employees whether or not they themselves contribute to the plan. If you choose to have all active employees eligible, then all active employees will receive the contribution type whether or not they participate in the plan. If someone is not eligible and you have chosen the above option, you may go into their individual set up in payroll and code them ineligible. The same is true for the reverse. If you choose to have all active employees ineligible, then you will have to manually select the individuals that are eligible and change their set up through the employee edit section.
With this plan, you must indicate whether or not the employee is eligible to receive the company contribution setup on the company level for this retirement plan.
NOTE: Several different 401k rules apply in addition to the overall contribution limits. The absolute maximum you can contribute will depend on your salary and the type of 401k plan in which you are participating. Review your plan documents for more information.