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POP Plan Error


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POP Plan, New employee elected to have his share of premiums withheld from his pay. Health coverage was provided, but payroll service neverĀ informed of the election, so no 125 Plan withholdings from pay. Error discovered several months later, after the end of the year.

What would most do in this case? Try to recover the missed amounts over the remainder of the current year on pre-tax basis; recover over the remainder of the year on after-tax basis, or the employer just absorbs the cost? Or something else?

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