401k contributions from a small check

I have a plan that sometimes runs into participants checks being lower than their 401k deductions. So for example the check is $50.00 but they have $75.00 as their deferral election. Are they supposed to then withhold the other $25.00 in a future check? We have two different opinions here and trying to find some back up.

I'd be very leery of a procedure that would allow $100.00 to be withheld from a future check without a specific participant election. I'd say nothing "extra" is withheld froma future check unless the participant authorizes it.

However the employer’s paymaster and the plan’s administrator resolve challenges of these kinds, it might be stronger to put the solutions in written procedures, and in participant-facing communications, including a summary plan description and the form by which a participant instructs her elective deferral.

Nothing is stated in the plan to do this, which is why I thought it odd. Thanks for the insight.

This is one reason we only allow percentages and not $ amounts.  And limit the % in the plan to be less than gross - taxes (FICA and others that tax off gross). I seem to remember my last employer had it limited to 90%.

i would not withhold from a future check for 401k.  Have the company/administrator adopt a written policy that states the payroll hierarchy (e.g., does medical come before 401k?), and address whether a partial deduction will be taken if that's all that is available in the paycheck. Agree that it also should be communicated to participants in SPD/SMM.