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Deferrals/Contributions on Overpaid Wages


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Guest Guy Incognito
Posted

Company just realized that it overpaid an employee a signficant amount over a year ago. Company is now seeking to recoup the overpayment. Elective deferrals were made on the overpayment (and matching contributions on those elective deferrals). If the company simply reduces the employee's base rate of pay to recoup the overpayment, will this issue simply correct itself (i.e., less compensation on which to make deferrals)? Any other thoughts on how to correct?

Thanks.

Guest Guy Incognito
Posted
There are so many misconceptions implicit in your post...

Such as?

Posted
There are so many misconceptions implicit in your post that I am moved to suggest getting competent legal advice about what is going on.

I hope the EE gets legal advice also!

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.

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