Forums
skipped before and after tax contributions
Benefits & Compensation
skipped before and after tax contributions
Exchange ideas about health plans, retirement, work/life benefits, and employee assistance.
If before/after tax contributions failed to be deducted for several month, is there a % limitation to which an employee can catch up?
0
Cat:Topic ForumsForum:ForumId52
Cat:Topic ForumsForum:ForumId52Discussion:DiscussionId36023
Forums » Topic Forums » Benefits & Compensation » skipped before and after tax contributions
|
skipped before and after tax contributions
posted at 8/3/2009 7:53 AM EDT
|
Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
Need more information -- /> What type of plan are you speaking of? Did the money go into the plan, but just wasn't deducted from the employee's check? Or did the money not go into the plan? Why did the deductions fail to be withheld? Was it the employer's fault? Did they receive an election form, but fail to implement it? Or did the employee fail to turn it in? If these are 401k deductions, there are specified remedies within the law for an employer's failure. Usually that means the EMPLOYER is responsible for making up the deferrals and might mean that they can NOT deduct it later from the employee. You definitely need to check with your consultant/TPA on how to handle this. It's NOT just a payroll issue. It could be a plan disqualification issue -- and no, I am not over-reacting. If it was an employer error, I would strongly suggest doing an audit of the system to make sure this employee is not the only one this happened with. Because these errors can get VERY expensive. If it is was an employee-based failure (such as they forgot to turn in the form on time), you need to check your 401k plan document -- does it limit %s? Some do. And it may be impossible for the employee to catchup within the current year. |
Forums » Topic Forums » Benefits & Compensation » skipped before and after tax contributions
