hr for me

yes, we do and it has to do with the setup of the plan allowed contributions along with the setup of payout of the PW contributions. Our H&W TPA helps with the calculations (we do a 2 month holdback on the wages for other benefits like health, life ins, STD, admin fees and then the overage goes to the 403b)

at my last employer we had three different participation comps because we had deferral employer match at 6 months, then a PS at 2 years and a different PS calc at 5 years. It was a pain and I had to manually calculate them each year because ADP couldn't calc YTD because of the entry (first of the month AFTER).... In my last few months there, I finally got ADP's system to be able to start the PS contribution correctly without having to input it in the specific payroll..... But yes, it was a large PITA!

I would surprise me if there was no way in payroll to do this...no matter what the payroll system. Even Quickbook self-service payroll had this ability almost 2 decades ago! I'd push back on Payroll (saying this as a person either responsible for or working with payroll professionals for close to 16 1/2 years!)

This is one reason we only allow percentages and not $ amounts. And limit the % in the plan to be less than gross - taxes (FICA and others that tax off gross). I seem to remember my last employer had it limited to 90%.

Why and how did they "forfeited the checks"? Your question isn't very clear. Why are you working with the DOL? Is this an audit? I would think the employer would have to make the forfeiture account whole and repay the amounts through the plan to those 5-6 participants. why do you think that you don't have to reissue the whole original amount?

agree that each QDRO should be applicable to different contribution/deferral/earnings time periods. The 2nd QDRO should go from the 2nd marriage date to the 2nd divorce date NOT back to the original marriage date. Your attorney should have caught that.

This was one spot we got caught in audit at my former employer a few years ago. There can be very specific timeframes on how long forfeitures can sit. The plan administrator should be making very sure they are following plan provisions on this. And use them as early as possible.

My last employer was name the same as a company in the same industry in a different state that happened to use the same recordkeeper. The other company sent in a check without their plan name and the recordkeeper sent it to us asking where they should deposit it for us..... Lots of reasons to match!

I've used them on the client side and like them better than some others I have used. I found their employer side website to be friendly, although sometimes their reporting had to be tweeked to use the right transaction dates needed (pay date vs transaction date for example). I'd recommend them to a smaller client.

I'm an HR manager (client of a TPA but did 401k recordkeeping back in the stone age of mainframes right up until things went daily) and part of my exit interview with employees is going over their balance and providing the distribution form and Special Tax Notice in that email. These were provided by my TPA for our usage. Many times I explain to small balances that if they leave the form completed with me, I can process and get them a check/direct deposit a few weeks after their last paycheck. It seems to work about 80% of the time. But my employees are lower paid, non-profit employees so they need all the $s they can get. My goal is to stay a small plan and not need an audit....and to not lose small balance participants. But the client does also need to stay on top of it if you can get them to add it to their exit interview/meeting.

I have to agree that I'd look back to the originating event - involuntary furlough/decrease of hours during the period. But if you want to argue voluntary due to the refusal to return, I'd check with legal counsel. In the end, the employer is getting a tax credit so there is only the minimal administrative cost of erring on the side of the employee as opposed to higher liability but I am not an attorney.

I think it's a bit about "know your audience" and many of the things posted are, like you mentioned, not so much for practitioners. I'm actually an HR manager and have found that they would be better for an employee audience than a practitioner one.

always been #2 since the early 90s for me!

Agree with MoJo...I had one on my spouse while they travelled overseas for work and we refinanced a home....we were required to call him and prove he was still alive at the moment that I signed documents in their name....

When the qualifying event is the end of employment or reduction of the employee's hours, and the employee became entitled to Medicare less than 18 months before the qualifying event, COBRA coverage for the employee's spouse and dependents can last until 36 months after the date the employee becomes entitled to Medicare. For example, if a covered employee becomes entitled to Medicare 8 months before the date his/her employment ends (termination of employment is the COBRA qualifying event), COBRA coverage for his/her spouse and children would last 28 months (36 months minus 8 months). For more information on how entitlement to Medicare impacts the length of COBRA coverage, contact the Department of Labor's Employee Benefits Security Administration at askebsa.dol.gov or by calling 1-866-444-3272. https://www.dol.gov/sites/dolgov/files/ebsa/about-ebsa/our-activities/resource-center/faqs/cobra-continuation-health-coverage-consumer.pdf

I wish I could find a better source, but from every FSA vendor and benefit broker I've ever dealt with, I've always been told FSA/DCA is an annual election with no rolling or evergreen election available -- that could be a plan document or vendor requirement versus written in the law itself though...... I've never seen an FSA administered with a rolling/evergreen election in my 20+ years of HR/Benefits. Problem is that in my google searches all I am getting are the 125 changes from COVID..... If I use the word "evergreen" as you suggested, I do come up with a post here in 2006 in Cafeteria Plans by Guestjjr12 (10/24/06) that talks about it being possible, but goes on to list the reasons it's a very bad idea. One poster did state that they do it..... (benefitslink.com/boards/index.php?/topic/33694-passive-fsa-elections/ ) And you get into the situation of "clearly informed"....especially since the funds are generally forfeitable unlike other benefits.

An employer could have a paid leave plan (generally concurrent with FMLA or other leave protection) and it might be possible that leave compensation could be written out of the definition of plan compensation used in calculations. FMLA would allow it as long as it also applies to all other leaves. Generally most employers would either have a self-funded or insured short term disability/leave plan that might pay. (Our outside STD wage replacement plan doesn't count as wages but is just another paid benefit like health insurance claims).... Definitely a good question to ask and one I had to ask on 4/1 for FFCRA paid leave and that compensation.

Answer to your 1st question: https://www.irs.gov/newsroom/irs-plan-now-to-use-health-flexible-spending-arrangements-in-2019 "Interested employees wishing to contribute during the new year must make this choice again for 2019, even if they contributed in 2018. Self-employed individuals are not eligible." Have no clue on your other two questions though.

Do you mean FFCRA paid leave? If so, agree that absent any specific exclusion in the plan, it would be included in W-2 compensation and therefore be part of the calcuations. Generally FMLA is unpaid normally and only paid under FFCRA through the end of 2020 (unless it gets extended by another law).

I will say that ADP (workforce now system) has it setup correctly for us (processed our first this payroll period) but that I would never take tax or deduction advice on wages from a payroll provider as they can, like in this case, be 100% incorrect. I am glad the sponsor noticed it early!

The IRS did answer the question for the FFCRA (emergency sick pay and EFMLA) in their FAQs (#34) of "Covid-19 Related Tax Credits " and I have to wonder if that gives some clue as to how self funded plans would calculate it under CARES. Just a thought, no real experience.

I also am in agreement that this would be denied. There are other ways the employee can solve the issue. The only thing that might be lost is the employer contribution to the HSA on the employee's behalf. But many spouses lose their own employer's benefits when they choose to be on their spouse's plan(s).

years ago, there were certain employees in our 401k plan (the trustees on the plan) that could not take their $s until all other employees took their money out. So was the person who left once of the trustees? I'd be curious what "froze the plan" means vs "froze distributions". We were with American Funds small plans.... it's been 10 years and a different employer, so I do forget the timing of all the distributions once the termination of the plan was announced though. It was within a few months.... So I am sitting with Larry that we need more details.

It is my understanding that because elections must be made every year for Section 125 plans, the correction would be in that year only as the election doesn't carry forward. There are no balances to test, only elections vs wages, and pre-tax elections are tested within the year. And while a plan can have a very limited amount that can be carried over for FSA Medical only (or a short grace period where last year's elected $s can still be used), it is nothing like the amount that accrues in qualified retirement plans over many, many years with attached earnings. So there are no really ongoing future or deferred benefits after the end of the current plan year (NOTE: HSAs do NOT fall under this) So there are no trust earnings to be taxed should the Section 125 fail nondiscrimination testing. In the end, Section 125 plans do "restart" each year..... I know this isn't a "cite" but is a really good explanation of Section 125 and their "every year" issues: https://www.sullivan-benefits.com/wp-content/uploads/Section-125-Cafeteria-Plans-Overview.pdf

Did they have a plan prior to 2016 (before the PEO) that merged into the PEO? If so, you might want to check the plan number---I only say this because we got caught up in an issue with the IRS years ago because 001 had been used prior to the PEO.... We moved out of the PEO at 1/1, so didn't experience your issues....We were a whole new plan.