Late Contributions

Deposits late by deposit date, but they mailed checks a week previous.    Do we calculate from check date or date that it was deposited into the account? 

I think the rules is the date the assets are "segregated from employer assets" for purposes of the "DOL rule."  When they are deposited/invested may be a fiduciary issues, but "segregating" from employer assets is the first hurdle.

That said, IMHO, "mailed" meets the test, but I have lost that argument with the IRS on more than one occasion.  Their position was never fully spelled out, but the undertones were 1) who mails checks anymore; and 2) it was still drawn on a corporate account, so it was still in the employer's "possession" (despite decades of law to indicate that a check - a "negotiable instrument" when taken out of the control of the drafter was considered out of their control.

Would it matter if the employee contribution that was "late" was just the owner/trustee?

Yes, it's still a late deposit.  I've had that issue before and it was treated the same as if there were 100 non-owners affected.

Thanks - that is what I though.

Yet another example of why deferrals should never be done by check. These clients kill me.