Guest cosmo01 Posted April 28, 2004 Posted April 28, 2004 A client has failed to withhold 401(k) contributions for this payperiod. It is only Wednesday.. How should they proceed? Should they stop the current run and reissue the checks, potentially making the direct deposits late? I am not certain how this should be handled.
jquazza Posted April 28, 2004 Posted April 28, 2004 Stop the press and reprint the correct checks. It is simpler to fix now than later. /JPQ
david rigby Posted April 29, 2004 Posted April 29, 2004 It might be simpler to fix in the subsequent paycheck. I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
Guest mkimball Posted April 29, 2004 Posted April 29, 2004 A agree with pax, at least it won't be a late deferral. The Plan Administrator (probably the employer) still has a problem for not following the participant's directions.
TBob Posted April 29, 2004 Posted April 29, 2004 It might be simpler to fix in the subsequent paycheck. How do you fix in the subsequent paycheck? Do you withhold double the next week? I thought that approach was generally frowned upon.
jquazza Posted April 30, 2004 Posted April 30, 2004 It can't be late deferrals if you haven't even cut the paychecks. /JPQ
Earl Posted May 1, 2004 Posted May 1, 2004 it sounds like it is the first deferral in a new plan. I would agrue just start next payperiod. I wouldn't think the start date of deferrals in a new plan would be guaranteed. my def election says "as soon as admin. feasible start withholding..." CBW
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now