Department of Labor Wage and Hour Division FLSA Back Wages

[jkharvey]

The Plan Sponsor made payment of back wages in 2022 pursuant to Department of Labor Wage and Hour Division investigation.  The Wages were reported on W2 form for 2022.  None of the employees elected to have deferrals taken from these back wages and no employer contribution was made to the plan for 2022.   In the 2021 Plan Year the Employer did make a matching contribution as well as a QNEC to correct the failed ADP test.  I understand that the Regulations discuss the back pay as it relates to 415.  Related to this back pay, my questions are as follows.  :

1.  Is the Plan required to rerun the 2021 ADP/ACP test to include the additional wages?

2. Is the Plan required to recalculate the Match for 2021 to include the additional wages?

3.  Is the Plan required to recalculate the QNEC allocation?

Thank you.