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Accounting, Payroll & Pension Issues/401k deductions
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Question
My employer has failed on numerous occasions to deposit my 401k deduction into my account. They eventually deposit the money with a "calculated interest" Is this allowable by law? How often is this allowed?
Sometimes mistakes happen. This is natural. It should not happen all the time. With Calculated Interest means you get the same interest you would have gotten if the amount was put in when it should have been.
You have not lost any money since they are paying you the interest you would have earned according to the market during the timeframe it should have been deposited.
It should be deposited within days of payment of payroll.
You should contact the Department of Labor employee benefits division to file a complaint.
Employee Benefits Security Administration at (866) 444-3272.
Shirley
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Answers by Expert:
Shirley McAllister, CPP, PHR
Expertise
I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.
Experience
25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.
Organizations
SHRM, APA, I.O.M.A.
Publications
I.O.M.A. and BNA
Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration.
Boise State University Human Resource Certification
Awards and Honors
APA Hotline Citation of Merit for last 8 years.
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