austin3515 Posted April 6, 2005 Posted April 6, 2005 Does anyone have a sample letter to participants letting them that the employer made a great PS + SH contribution for them? I have a client that wants their participants to know just how generous they are. Austin Powers, CPA, QPA, ERPA
Blinky the 3-eyed Fish Posted April 6, 2005 Posted April 6, 2005 I think a shrine erected outside the employer's office would be more appropriate. I picture a standing owner, with a staff in one hand and the Erisa Outline Book in another, surrounded by kneeling and worshipping ancillary employees. I forgot someone needs to be holding a palm frond. "What's in the big salad?" "Big lettuce, big carrots, tomatoes like volleyballs."
R. Butler Posted April 6, 2005 Posted April 6, 2005 Don't the participants get a statement that shows the contributions? If thats not enough then probably Blinky's idea would be good.
austin3515 Posted April 6, 2005 Author Posted April 6, 2005 While I find Blinky's remark entertaining, I'm not sure a letter is so crazy. A lot of employees don't understand what's going on on those statements. MAYBE they notice the deposit (if they open their mail), but they might not know it was 5% of pay. Austin Powers, CPA, QPA, ERPA
Blinky the 3-eyed Fish Posted April 6, 2005 Posted April 6, 2005 I agree that there is ample reason for the ER to want such a letter. The way you phrased the first post though, "... to know just how generous they are", the image that popped into my head inspired my comments. "What's in the big salad?" "Big lettuce, big carrots, tomatoes like volleyballs."
austin3515 Posted April 6, 2005 Author Posted April 6, 2005 I'm glad to be an inspiration to the great 3 eyed fish Austin Powers, CPA, QPA, ERPA
Belgarath Posted April 6, 2005 Posted April 6, 2005 The only time that I actually saw an employer do such a letter (a good idea, and probably lots of them do such a letter and we just don't see it) they had a typo and inserted 8.3% instead of the 3.8% they actually contributed. Employees raised such a stink that the employer immediately terminated the plan to "fix the ungrateful @$#^$%^'s!"
JanetM Posted April 6, 2005 Posted April 6, 2005 We do a memo from the CFO that shows total contributions and the percentage that goes to each. This gets sent to the 100 or so locations who can either post it on the board or make copies and hand it out. JanetM CPA, MBA
austin3515 Posted April 6, 2005 Author Posted April 6, 2005 Any shot you'd share your masterpiece? I won't blame ya for saying no, but I have to ask Something's with my eye today??? Austin Powers, CPA, QPA, ERPA
JanetM Posted April 7, 2005 Posted April 7, 2005 Sure I don't see any problem with that - but I will change the company name. Opps, the year in question didn't give the effective percentage. You get the idea. 2003_ps_contrib_djd.doc JanetM CPA, MBA
JanetM Posted April 7, 2005 Posted April 7, 2005 Sure thing! Hope it was enjoyable and educational. JanetM CPA, MBA
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