wsp Posted March 4, 2003 Posted March 4, 2003 If I read the older messages correctly that the social security and medicare taxes are applied to compensation after the deferrals to pay premiums in a Section 125 Premium Only Plan, then would this order of payroll occurances be correct? Or is my original assumption not a correction one? Gross Pay Less deferrals/contributions to section 125 POP plan FICA/FUTA Pay Less FICA/FUTA Less 401(k) deferral (based on FICA/FUTA Pay) Net Taxable Pay Less taxes Less loan repayments (based on Taxable Pay) Net Pay
oriecat Posted March 7, 2003 Posted March 7, 2003 The only problem I see, if I understand correctly, is that you are listing the 401k deferral as based on the FICA/FUTA pay, instead of the gross pay. That could be correct under your 401k plan document, but it just seems odd to me.
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