Question on Allocation of Earnings on Late Deposits

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I would like to know what others do for the following situation:

A company with hundreds of employees is late on depositing deferrals for many payrolls. We would calculate the lost earnings based on the highest return of the given mutual fund selections in the plan.

Now, how do you normally allocate the earnings out to the participants after you have come up with the total? For small plans it would be easy to allocate this for a few participants. However, this is such a large plan that it doesn't seem administratively feasible to allocate (say 8%) to each participant for 20 payrolls. The software does not do the calculation.

Are there any other suitable allocations that would be deemed reasonable? I can't find any support on the DOL website or via their VFCP.

[jquazza]

You have to allocate the earnings to the participants who missed them, hence, the allocation should be made prorata the contributions of each payroll.