late matching contributions deposit associated with late deferrals & Form 5500

[AdKu]

My understanding of late deposit reporting applies to employee contribution.

My client auditor thinks the late payroll by payroll matching contribution associated with the late deferral contributions deposits need also to be reported on Form 5500 Schedule H line 4a.

do late matching contributions deposit (associated with late deferrals) added to the late deferral contributions and reported on Form 5500 schedule H line 4a?

Many thanks!

[Lou S.]

We don't reporting matching contributions. I'm not sure why you would.

[AdKu]

Thank you Lou S.

The auditor is not still satisfied.

Excerpt from our e-mail exchange:

If the plan requires the matching be paid pay period by pay period, which is how the matching is being paid, why are we not including the matching as late?

These are monies that participants are entitled to, even though there may be a period of time until they are vested in them.

Can you please take another look and see.

It appears he want some kind of proof, which I'm short of at this time.

[Lou S.]

I'd ask him to point out for you in the DOL regulations on EMPLOYEE contribution timing where EMPLOYER contributions are ever mentioned.

[benconsulting]

We recently had exactly the same situation with an auditor, who even called DOL, staff accountant for an answer and was given wrong information(surprise!) on this.

The simplest proof is on page 38 of 2015 Form 5500 instructions for line 4a. It only talks about Employee or Participant contributions, not about employer contributions.

A look at IRS Notice 2000-3 (Q-2) may also be helpful. This also explains about true up issues of employer contributions timings.

We stuck to our position and they eventually came around.

[benconsulting]

Thank you Lou S.

The auditor is not still satisfied.

Excerpt from our e-mail exchange:

If the plan requires the matching be paid pay period by pay period, which is how the matching is being paid, why are we not including the matching as late?

These are monies that participants are entitled to, even though there may be a period of time until they are vested in them.

Can you please take another look and see.

It appears he want some kind of proof, which I'm short of at this time.

Because these contribution are not and will never be classified as "participant contributions", which is what line 4a is all about.

[Bill Presson]

There still might be an issue that needs to be corrected, but it just doesn't get reported like the auditor is requesting.

[AdKu]

Thank you all!!!

[TPAJake]

There still might be an issue that needs to be corrected, but it just doesn't get reported like the auditor is requesting.

Exactly--If the doc requires a safe harbor match calculated & deposited per payroll very specifically, then maybe you have an issue. That's a big IF, because if I write a doc that matches calculated on a per payroll basis, I'm not adding language to specify when that deposit is to be made. That's Employer money, not a reportable late deposit & is only subject to statutory time limits.

[Mike Preston]

Don't the SH rules specify that in the event of payroll to payroll match the matching funds must be deposited quarterly?

[benconsulting]

Don't the SH rules specify that in the event of payroll to payroll match the matching funds must be deposited quarterly?

That is what IRS Notice 2000-3, Q-2, mentioned above discusses.