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What is maximum employer holdback time?


Guest Kronenberg
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Guest Kronenberg

MY EMPLOYER SENDS IN MONEY TO MY SARSEP ONLY SPORADICALLY, AND WHEN I TRY TO RECONCILE MY NUMBERS (DEDUCTIONS) AGAINST THEIRS (ACTUAL CONTRIBUTIONS) THEY ALL RUN FROM THE LIGHT LIKE A BUNCH OF COCKROACHES. BASICALLY, MY EMPLOYER HAS TOLD ME, ANY LOYAL EMPLOYEE WOULD BE WILLING TO "LEND" THE COMPANY MONEY IN ORDER TO ENSURE ITS FINANCIAL HEALTH. I, FOR MY PART, HAVING NOT BEEN ASKED TO BE A "LENDER", CONSIDER THIS MISAPPROPRIATION TO BE THEFT. AS IT STANDS, MY EMPLOYER KNOWS I AM SO FAR BEHIND IN UNPURCHASED SHARES THAT I DON'T DARE LEAVE AND THAT IF I COMPLAIN THEY WILL HAVE A LABOR LAWYER (ALREADY SHADOWING ME)ON MY CASE IN NO TIME FLAT....SO, THE BOTTOM LINE: HOW LONG IS THE ESCROW PERIOD, ANYWAY? CAN THEY HOLD MY MONEY FOR A MONTH, TWO MONTHS, HALF A YEAR, HOW LONG? AM I ON THE SHORT END OF THIS, AND MAY AS WELL KISS MY MONEY GOODBY?

[This message has been edited by Kronenberg (edited 07-09-99).]

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Guest peterpeter

I've had a similar problem with my employer submitting the payroll withheld once in a really long time. At one time he was behind as much as 3months.

After endless reminders to him, I finally called Fidelity to ask them what I should do (since they are the trustee to our SIMPLE IRA plan). They advised that I should get in touch with the Labor dept to inform them of the violations. When I mentioned this to my boss, he got his act together and made one deposit. Since then he has lagged back into his relaxed manner and I'm considering getting in touch with the DOL.

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Guest Fishchick

Under this law :ERISA Section 2510.3-102 the employer has to make the deposits as soon as they can be segregated from employer assets, generally within 15 business days after the end of the month in which the deferrals were made.

For example, you defer $40 on July 10th, the employer has until August 22nd (15 business days, with one holiday included) to make the deposit.

The Department of Labor has big problem with this kind of behavior. It's pretty common, though, and it's hard to bite the hand that feeds you, so to speak and go up against your employer.

This URL has a list of where to make a complaint if you decide to.

http://www.dol.gov/dol/pwba/public/contacts/folist.htm

[This message has been edited by Fishchick (edited 07-16-99).]

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