Guest jefe96 Posted September 1, 2005 Posted September 1, 2005 Searched for an answer on this but the responses didn't necessarily related to my situation. New employee eligible to enter plan on 8/1. EE completes salary reduction form and is enrolled in the plan. Due to mixup by payroll dept. in notifying payroll processing company about new deduction this employee did not have 401k deducted for 2 August payrolls. Going forward they are setup correctly. Since this was due to an administrative oversight (mis-communication) we are allowing the ee to 'make-up' the missed deductions. Is a suitable correction method just to allow the employee to double up the missed deductions and have that withheld from the upcoming paycheck?
WDIK Posted September 1, 2005 Posted September 1, 2005 Are there matching contributions? ...but then again, What Do I Know?
Guest jefe96 Posted September 2, 2005 Posted September 2, 2005 Yes, forgot to mention that. But, match is paid annually not payroll period method.
WDIK Posted September 2, 2005 Posted September 2, 2005 Examples 5 through 7 in Appendix B, Section 2 of Revenue Procedure 2003-44 may give you some ideas. ...but then again, What Do I Know?
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