Employee contribution

Plan is terminating due to Stock sale and the sale date is 01/31/2024 and the termination date is 01/30/2024.  The pay period is until  01/31/2024, the Plan sponsor will deduct the employee contribution on 01/29/2024 which will include the 01/31/2024 contribution, can the contribution for 01/31 be included though they are deducting the contribution before the termination date? the reason I ask is 01/31 is the sale date as well and since its a stock sale I believe they should be deducting only up to the termination date which 01/30/2024. 

I think I would have made the term date 1/31 to eliminate these Qs. Having said that, I think I would include the 1/31 pay.

"The pay period is until  01/31/2024, the Plan sponsor will deduct the employee contribution on 01/29/2024 which will include the 01/31/2024 contribution," 

Do you mean "the pay period ends 1/29 but the pay date is 1/31"? Otherwise I can't make sense of that statement. 

2 hours ago, Bird said:

I think I would have made the term date 1/31 to eliminate these Qs. Having said that, I think I would include the 1/31 pay.

"The pay period is until  01/31/2024, the Plan sponsor will deduct the employee contribution on 01/29/2024 which will include the 01/31/2024 contribution," 

Do you mean "the pay period ends 1/29 but the pay date is 1/31"? Otherwise I can't make sense of that statement. 

 

sorry, I meant the pay period ends 01/31 and they will be paid until 01/31, however the contribution will be deducted on 01/29 which include their 01/31 as well. 

I think the 1/29 date is the date the payroll is being run. If accurate, that date doesn't matter. The ones that matter are 1/30 (termination date) and 1/31 (check date). If the plan terminates on 1/30 and no further contributions are allowed, then the 1/31 check date is outside that parameter and no deductions should be processed.

Time to fix the dates. Might mean they need to move the payroll check date to 1/30.

1 hour ago, PS said:

sorry, I meant the pay period ends 01/31 and they will be paid until 01/31, however the contribution will be deducted on 01/29 which include their 01/31 as well. 

Again/still, I'm not sure what that means, although I'm pretty sure it means that 1/29 is when everything gets set in stone.

As I see it, you have 3 options:

1. Say that nothing can be withheld from the 1/31 check because it is after the term date. I don't think that is what anyone wants.
2. Fix it right as Bill suggests; just change the friggin' term date to what it should have been and move on.
3. Ignore the documentation and let the money be withheld anyway and hope you can talk your way out of it, if necessary.

#2 is the way to go, because it is simple and easy. If it were hard, then, well, I imagine I'll get the side eye from some, but #3 is not such a big deal for me, as long as no one is being hurt. If it came up, it would be years later, and uncorrectable, and no one would care. 

But seriously, find out what the goal is and then make the docs fit that.