Manufacturing & Healthcare
INDUSTRY
35,000
EMPLOYEES
$1B
ANNUAL REVENUE
401(k) Contribution & Match Reconciliation
VIP SOLUTIONS CASE STUDY
BACKGROUND
Our client’s 401(k) audit identified errors in payroll deduction calculations as well as process issues for timely submission of payroll data files and funding of employee 401(k) accounts to the 401(k) trustee. These issues held up a sale transaction, and our client sought help remediating these issues to get the sale back on track.
OBJECTIVES
Recalculate and correct eligible earnings, employee deductions and employer matches for 401(k) and ROTH plans
Make employees "whole" by calculating amounts owed to employee or overfunded to employee's 401(k) and ROTH accounts
Create processes with approvals and internal controls to prevent ongoing errors and penalties
SOLUTIONS
Obtained plan documents and properly defined eligible earnings, employee eligibility, contribution limits, and proper and timely payroll data and funding requirements
Calculated variance between correct employee deductions, employer contributions, and employee funding limits and Trustee receipts, the timing of receipts, and application of funds to employee accounts by payroll period
Assisted client, attorneys, and trustee with QNEC submission
QNEC filing and employee accounts
FULLY FUNDED IN A TIMELY MANNER
leading to the sale of multi-billion dollar entities
