You can't deduct automatic enrollment contributions from an employee's wages until the employee has a reasonable time to make an affirmative election (opt out of the plan) after receiving notice. An affirmative election is when the employee decides:
- not to participate in the automatic contribution arrangement or
- contribute an amount different from the plan's default percentage rate.
The employer must begin deducting automatic enrollment contributions from an employee's wages (under the qualified automatic contribution arrangements regulations) by the earlier of these dates after giving the employee the notice:
- 30 days or
- the pay date for the second pay period.