Looking for recommendations on software used to calculate state tax withholding. Any recommendations?

This is overtime /vacation pay for our manufacturing company:

A holiday week is considered 32 hours actually worked at your regular rate of pay, plus 8 hours holiday pay at your regular rate of pay (for any observed holiday) which equals 40 hours. If you work on a paid holiday, you will receive an extra 8 hours regular pay.

Is this standard? Or is it a requirement that the employer pay 1 1/2 times the regular rate for the hours actually worked on the holiday, plus their paid time off for the holiday?

What does your company do? Your comments are appreciated.

I have a client company that made two invalid loans to two highly compensated employees. The employees have no ownership in the company and no other relationship with the company that would seem to make them "disqualified persons" as that term is defined in the Form 5330 (which is the form used to pay the applicable excise tax to the Service). Is an excise tax payable by the Company and not by the two employees? What about the individuals at the Company who may have been fiduciaries who participated in making the loans? It does not make much sense to me to have an excise tax paid on the same loan by more than one company/individual. I would like to simply have the company pay the excise tax on the two loans. I am rambling! Any response to any of the foregoing would be appreciated. Thanks.

At what age can you begin contributing to a Roth IRA. Is this an intelligent investment decision for retirement or are there better alternatives?

Whether a company can have 4 entry dates into their 401(k) plan and the employees of a newly acquired subsidiary can participate in the plan but with only 2 entry dates? Any potential problems with 401(a)(4) nondiscrimination testing (benefit, right or feature)?

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My firm is struggling with attracting and retaining part-time workers. We offer health insurance, however, the part-timer must pay the entire premium. I would be interested to hear from other companies if you 1) offer part-time benefits, and 2) how much of the premium does your firs subsidize?

Company A has a qualified plan. On 1/1/98, the plan had 90 participants. On 12/31/98, the plan had 64 participants. Of the 26 that dropped from participation, 4 quit, 2 were transferred to a nonparticipating foreign affiliate, and 20 were laid off. Under the rule of thumb of a 20% or more reduction in participation during a year, this appears to be a partial termination.

My question is: must Company A cause to be fully vested (a) all 26, (B) only the 20 who were laid off, or © only the 22 who were laid off and/or transferred?

I have a client who wants an opinion letter for its prototype Educational IRA document; however, I can not find where any LRMs have been issued nor where the IRS has said they will start accepting requests for opinion letters. Any news?

A company has several nonunion and union plans. Members of one of the union 401(k) plans want to increase deferral limits to 20%. There is also a 5% company profit sharing contribution. When a company sponsors multiple retirement plans, including union plans, how is the 404 limit calculated? Is it total corporate payroll, or is each union plan payroll calculated separately?

Should a Schedule P be issued by the custodian of a 403(B)(7) custodial account that is a Title I plan? My research points to Sch. P for 401(a) plans only. Do you have a reference that support filing or not filing Schedule P?

Does anyone know of any software that can perform the MEA calculation and then proceed with the administration of 403(B) plans. I work for a TPA firm and we use Quantech (QT) for the administration of our defined contribution plans. When I spoke to QT's technical support about this capabiltiy they responded that it is not available on the system at this time. Any suggestions or advice would be appreciated. Thanks.

I am being told by 401(k) prototype sponsor that it is appropriate to allow deferrals in a 401(k) plan prior to the date that the document is executed so long as: (1) the deferrals are placed in a trust within the 15-day period (which funds would be transferred to the trust subsequently established for the plan); (2) the effective date of the document is retroactive to the date the deferrals were first withheld; (3) the document reflects the appropriate deferral percentages (ie, the document reflects what the participants' election forms allowed them to defer). This is contrary to what I have always thought; that is, I have always thought that deferrals could not be allowed until there was an executed document in place. Further, even if deferrals could be allowed before a document is in place, I do not think it is appropriate to place the deferrals in another trust to later be transferred to the trust established for the plan. Any thoughts?

We have an employee whose dependent died early in the year. We of course stopped his Dependent Care deduction, but the remaining concerned is that more has been deducted than they will have receipts for. Can the full amount, contributed to the plan prior to cancellation of the deduction, be refunded even without receipts totalling the contributed amount?

I have a participant that worked 6 mos as a non-union employee and then joined the union and continued working for the same employer. He is now is no longer eligible to participate in their profit sharing plan. The plan provisions are that all employees completing 501 hours share in the year end profit sharing contribution (including terms). He has not term'd and is no longer an eligible ee but did complete the 501 requirement. Does he share?

My company continues to maintain a SARSEP benefit plan and are very generous with their contributions. However, the financial institution that originally set up the plan has limited choices in investments. I am preparing a proposal to change from the financial institution to a financial planner. The IRS has said that the company can continue to operate the SARSEP if they "appoint a new trustee [and] continue to use the old plan". My question is how does my company appoint a new trustee. In addition, can the plan be administered in house? Both questions assume that answers do not violate the IRS regulations regarding the continued operation of the SARSEP plan. Thank you in advance.

[This message has been edited by Scott L Brown (edited 07-06-99).]

Trustee paid 35,000 for ernst money contract on land as a plan investment. At closing there is a simultaneoues transaction to sell a portion of the land the proceed are used purchase the property. At no time is the property leveraged by either by intent or actually. Is this a prohibtive transaction? Any thoughts?

I have a plan where employees have transferred from a 'Union' Status to a Salaried, Non Union Status. Are contributions and compensation simply prorated for ADP/ACP testing purposes?

I have a client that wants to set up a non-§125 FSA, i.e., no discretionary contributions are made by the employee; the employer will merely reimburse funds up to a limit. The employer, however, wants to make $750 dollars available every 6 months rather than have $1500 available at all times during the year. While this would run afoul of the $125 regs., I know of no reason why we can't have these terms in place for a non-§125 FSA. Does anyone see a problem with this?

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Charlie Stevens

Michael Best & Friedrich LLP

I read a previous questions requesting info on newsletters for end users. The recommendation was to look up Darkhorse Communications. I can not find a site for this name. Can someone help me with the site name and/or names of other sites where I can purchase quality newsletters to send out to my referral sources. Thank you!

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Does anyone see any drawbacks to client's naming a private foundation set up by him as the beneficiary of his 401(k) account??

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