401k - 3% Safe Harbor Contribution made by employer but he made me pay him back

[Guest tiredbutnotretired]

I have been with the same employer for almost 15 years. After year one, a 401k plan was introduced with a provision for a 3% Safe Harbor contribution. Each year, the contribution was made by the employer but, in my case, he deducted his contribution from my wages later (off the official books, of course). They calculate what I earn each month and subtract 1) my Health Insurance premium, my employee expenses, the EMPLOYERS FICA and Medicare contributions and, once a year, the 3% he claimed to have made towards my 401k. He did actually make the contribution but not with the business' money since he took it back from me later. I know this is wrong but was warned when I brought other issues up that I better not "rock the boat". Other employees have their health insurance premium paid in full and their 401k SH contributions were made without making the employee pay it back. I think this practice is wrong and he owes me about 14 years of 3% contributions. I make good money so it's substantial. Has anyone had a similar experience and can anyone verify if this is a big problem for the employers since it's ERISA.

I actually like the employer personally and I like the other employees but this is not the only issue I have. There are also issues about the Health Insurance Premiums (I'm in California), FICA and Medicare contributions (Employer's portion) and Expense Reimbursements that have gone on all these years as well.

[Lou S.]

Have you talked to an employement attorney with ERISA experience?

[401king]

You're saying that once per year he deducted your 3% from your wages - Does that mean that a single paycheck was reduced by 3% of your annual salary? I'm not sure why you waited 15 years to bring this up, why you were the only one, and why everyone else told you to ignore it.

[Kevin C]

Here is the consumer assistance page from the DOL /EBSA website. They have a toll free number, an e-mail link and a link to find and contact your local office. They can be slow, but they do check into participant complaints. My advice is to contact them (from home) with the information you've provided.

http://www.dol.gov/ebsa/contactEBSA/consumerassistance.html

[PensionPro]

There was a previous discussion along these lines ...

http://benefitslink.com/boards/index.php?/topic/13472-salary-reduced-due-to-top-heavy-payment/

[ETA Consulting LLC]

Tiredbutnotretired,

Is your employer an LLC taxed as a partnership? If so, are you one of the partners?

From the fact pattern, they appear to treat you as a partner if the company.

Just curious.