401k funded by employer and not fixed

401k plan changed payroll providers at the beginning of 2019.  For the first three payrolls of 2019, they accidentally keyed the employee deferral amounts into the company match line (not sure why that was even set up, since there isn't a match in the plan!).  The plan sponsor "fixed" this by taking the deferrals from the first two paychecks out of the third paycheck... but never took the next step of fixing the "match" from the third paycheck.  So the net effect is that there is a February 2019 payroll where the normal deferrals were paid by the employer.  Since this was never fixed, the W-2s have the wrong amount, in the sense that they don't match the deposits, and also if you multiply the deferral election times the compensation, it's not right... but the W-2 does match what was deducted from compensation, so is it really wrong?

Most of the amounts in question are <$50 per person, though there are a couple that are about $100.

What kind of correction should be made?  It seems like something needs to be done.  In the plan, the participant is not short any money; in fact, it's the employer who is short about $2K overall.  There is a profit sharing contribution to be done, but it's a set percentage (one of those few plans remaining) - I could recommend that the excess for each participant offset their profit sharing, but I'm not sure that's OK since it was an employer error.  It would feel that the employee would be losing out on the amount they should have in their account.

Sounds to me like you can either take the position that:

• too much was put in based on what actually happened with payroll, and you can take it out (probably by shifting it over to profit sharing).  But then you have a problem of not following deferral elections, or
• they didn't follow the deferral elections and it was fixed by...well, by what happened, effectively giving everyone 100% of what they had elected.  It's a more generous fix than EPCRS would call for, but I'm not sure anyone would object (certainly not the participants) by calling it fixed and moving on.  

I'm inclined to go with the latter...unless they want to take the time, trouble and expense of fixing it precisely as would be required by EPCRS, AND then dealing with the "extra" money that wasn't really needed for the precise fix.  All of that might add up to...oh, $2000.