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USERRA and make-up deferrals


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USERRA requires employers to allow make-up contributions. I haven't seen any guidance on how these contributions are to be handled. I assume they must be made through salary deferral. Is that correct? I also know that they must be included on the W-2 box 13 with the year they are being made up for shown. So I also assume that the make-up deferrals would be excluded from the Box 1 wages on the same W-2. Is all this correct?

Is their a chance that the employee could be allowed to make up the deferral though a lump sum payment? If so how would this be handled with W-2 reporting?

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