QUESTION
How do I fix a deferred compensation error?
Asked on Feb 13th, 2013 on Business Law - Arizona
More details to this question:
Due to system error we failed to payroll deduct an employee's mandatory contribution to a 401(a) money purchase plan. As the employer are we responsible for making the contributions to correct the error or is the employee?
1 ANSWER
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Since the contribution was mandatory and was required to be made by the employee and not by the employer, correction would involve the employee's funds only. The terms of the plan itself often cover correction of mistakes. Read the plan.
Answered on Feb 14th, 2013 at 9:50 AM