Recent Posts

Archive

Tags

Change Payroll Providers Lately?


Change payroll providers? Have you checked the settings in each applicable pay code to ensure 401(k) deferrals are being withheld?


Over the past decade, I can't count the number of times I have seen companies change their payroll providers and not double check the settings in the pay codes to ensure deferrals are being withheld on the applicable pay codes. Per the Plan document (or adoption agreement of the Plan), Plan compensation is described.


It may state all wages noted on the employee's W-2 or other criteria. It can also state whether deferrals are withheld on bonus and commission pay. So, if you're going through a payroll provider change, you are better off double checking all applicable pay codes and comparing them to the Plan document (or adoption agreement) to be sure your are compliant with it.


Pooler CPA Group, LLC

Known for their fixed 401(k) audit fees

Professional, friendly service from the founder

And the companions, known as the 401k.9s

 

©2020 BY SMP Marketing Solutions, LLC.