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Accounting, Payroll & Pension Issues/Withholding Payroll
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Question
Vanessa, Thanks for answering my question on the 24th concerning payroll withholding.I have not yet received an answer from the company as to why they would withhold payroll when changing pay periods. They have now offered a bridge loan for the withheld pay to be paid back interest free over ten pay periods. Crazy! My feeling is that this may be a sneaky form of cost savings. Are there any Federal regulations that would prohibit this type of accounting/payroll practice?
I'm not sure. I would check with your state's labor board website. Search for withholding pay. Usually, state laws are stricter and more specific than federal laws regarding employment. I'd start there. If it comes down to it, call them and ask. They're usually pretty nice about things like this.
Best of luck to you!
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Answers by Expert:
Vanessa D. Powell, CPA
Expertise
I am experienced with general bookkeeping, payroll, journal entries, adjusting entries, all types of pension accounting, compliance issues, ERISA, benefit plan auditing, financial statements, payroll tax, Form 5500, retirement planning, and related issues. Please no homework questions. Only US accounting, please.
Experience
I am a CPA in Southern CA. I audit not-for-profit organizations, corporations, and employee benefit plans for the large accounting firm I work for, as well as performing other attest services, planning, and tax services.
Organizations
California Society of CPAs, American Institute of Certified Public Accountants
Education/Credentials
Licensed CPA in the state of CA. Graduated summa cum laude from Colorado Technical University. In order to keep my license, I take 80 hours of CPE every two years. Much of it in the field of accounting, auditing, and employee benefit plans.
Awards and Honors
Graduated summa cum laude (with highest honor).
Past/Present Clients
I have clients from all over the world, in nearly every industry. Most of my audit clients are employee benefit plans and not-for-profit entities. Most of my compilation engagements are manufacturing, agriculture, and construction.
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