poisnivey

Hello: Does anyone have any feedback or concerns implementing the 2022 W4P in their DB systems? I am being told that the IRS didn't rule on implementing, but from what I can find, the W4P is required to be in place for 2023, where as the W4 was required in 2022. I found IRS publication 15-T that specifically addresses this so I am unsure why some don't think this is law. Any thoughts or insight is appreciated. Patty

We had a new earnings code used for group of associates on our last payroll that was not setup correctly as 401k eligible. It was caught after 1 payroll and will be corrected on the subsequent run. So while everyone who elected a deferral had their deferral calculate on part of their earnings, there were some whose contribution did not calculate on all of their earnings due to this code. For example, base salary $500, new commission code $100, 10% deferral should have been on $600, but we took on $500.00 Proposed correction method is letting everyone who was affected know that they can increase their deferral to make up for any part on their end, and let our match true up catch anyone who missed a match contribution. (safe harbor plan, match contributions every payroll with true up at year end) Comments? We at first thought we had to do QNEC on match, however, would get double match at true up time.

In a defined benefit plan, we located missing participants and validated current address. They were non responsive to begin their benefit so we defaulted their election and began payment. Two participants, who are 70.5, have not cashed their checks. Do I stop payment and not reissue so that a 1099 is not generated or should we continue making payments knowing the checks aren't being cashed?