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Showing results for tags 'payroll'.
Found 3 results
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We represent Buyer in a carve-out transaction. The subsidiary that we are buying is the legal employer of its employees, but HR functions are centralized at parent level. Several employees of sub who are coming to buyer will receive retention bonuses post-closing, paid by the Seller. The legal question is whether, where the services are not provided (and have not been provided) directly to seller but to PHS and the consolidated group is being split by the transaction, which is the proper entity to conduct payroll withholding on payments made after the closing?
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A plan allows dollar deferral amounts, ie. $50, $40, etc. What should occur if the employee does not make enough in their paycheck to cover the deferral amount? The plan sponsor has be netting them down to $0 in this occasion in the past.
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Client accidentally deposited payroll contributions twice for the same effective date. Instead of reversing second transaction, can employer leave the funds deposited alone, and change the effective date of the second deposit to match with the next pay date? The funds would have been deposited before they were withheld from participants' paychecks, but isn't the risk entirely on the employer? There is no harm to participants - in fact, they benefit.
